News & Analysis as of

Third-Party Bad Faith

Cozen O'Connor

Troung v. Sanders: Matter of First Impression by the Louisiana Circuit Court of Appeals on “Betterment Deductions” in Third-Party...

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In December 2024, the Louisiana Second Circuit Court of Appeals rendered a significant opinion in Troung v. Sanders, et al., addressing the contentious issue of “betterment deductions” in third- party property damage claims....more

Freiberger Haber LLP

Unfair Competition: The Bad Faith Misappropriation of Confidential Information For a Commercial Advantage

Freiberger Haber LLP on

In Valkyrie AI LLC v. PriceWaterhouseCoopers LLP, 2024 N.Y. Slip Op. 06141 (1st Dept. Dec. 5, 2024) (here), the Appellate Division, First Department affirmed an order involving claims for unfair competition, tortious...more

Carey Olsen

Bermuda Insurance Litigation Guide 2024 (Chambers)

Carey Olsen on

Bermuda is a British Overseas Territory. The modern legal system of Bermuda is established by the Bermuda Constitution Order 1968, an Order in Council of the United Kingdom that established the Supreme Court as the primary...more

Charles E. Rounds, Jr. - Suffolk University...

Trustee in breach of trust conveys trust property to a third party: Is the transferee a necessary party to an action for breach...

If the trustee in breach of trust conveys the trust property to a third party to the trust relationship, would the transferee be a necessary party to any action for breach of trust that the trust beneficiaries might bring?...more

Wiley Rein LLP

California Court Finds Insolvency Exclusion Ambiguous, Limits Application to Insolvency of Third Parties Other Than Claimant

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A California federal district court, applying California law, has held that an insolvency exclusion in a bankers’ professional liability policy did not bar coverage for a lawsuit filed by a receiver against a bank, finding...more

Snell & Wilmer

Colorado Supreme Court Holds Insurers Are Not Entitled to Intervene Where Insured Assigns Its Rights to Third Party

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In a 4-3 decision in Auto-Owners Insurance Co. v. Bolt Factory Loft Owners Association, Inc., the Colorado Supreme Court held that an insurer who is defending under a reservation of rights is not entitled to intervene where...more

Vinson & Elkins LLP

Western District Of Texas Sanctions Patent Infringement Defendant For Discovery Abuse And Misconduct

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On April 6, 2021, the Western District of Texas ordered that preliminary injunction relief was appropriate to prevent irreparable harm to the plaintiff due to the defendant’s “discovery abuse and related misconduct.”...more

Smith Debnam Narron Drake Saintsing & Myers,...

Court Approves Sale of Assets to Third Party Despite Stalking Horse Bad Faith Allegations Against Purchaser

United States Bankruptcy Judge John E. Waites approved a sale of substantially all the assets of a small business Chapter 11 Debtor over the protests of a “Stalking Horse” bidder who claimed the successful bidder was acting...more

Littler

Littler Global Guide - France - Q4 2019

Littler on

Reporting Harassment to Third Parties Constitutes Slander - Precedential Decision by Judiciary or Regulatory Agency - When reporting facts that can form the basis for a complaint of harassment (moral or sexual), the...more

Dentons

Bad Faith Claims Are Barred Against Third-Party Administrators

Dentons on

In De Dios v. Indemnity Insurance Company of North America, the Iowa Supreme Court set out to answer a certified question of law: Can third-party administrators be liable for bad faith failure to pay workers’ compensation...more

Steptoe & Johnson PLLC

First Look - Spring 2019: Insurance Newsletter

It takes a nimble insurer to navigate around the landmines created by a consent judgment. This issue explores the challenges presented when a plaintiff and a defendant settle a claim, yet they agree that the plaintiff will...more

Saul Ewing LLP

Washington Court of Appeals Highlights Limitations on Third-Party Standing to Bring Bad Faith and Statutory Claims Against...

Saul Ewing LLP on

After her condo unit was damaged by fire and water, Gretchen Michels sued Farmers Insurance Exchange, her condominium association’s insurer, for bad faith and violations of the Washington Consumer Protection Act....more

Carlton Fields

Eleventh Circuit Reverses Sanction Imposed Against Party That Defaulted in Arbitration to Determine Whether Party Acted in Bad...

Carlton Fields on

The Eleventh Circuit reversed a lower court’s entry of a default judgment against Acosta Tractors, Inc., that was based solely on Acosta’s default in the underlying arbitration. ...more

Steptoe & Johnson PLLC

Third-Party Bad Faith Is Dead Again!

Steptoe & Johnson PLLC on

Back in June 2016, we reported on a 3-2 Memorandum Decision of the Supreme Court of Appeals of West Virginia (“WVSCA”) which appeared to be a disguised (and prohibited) third-party bad faith claim under a liability policy. In...more

Cozen O'Connor

Florida Alert: Can a Liability Carrier be Sued for Bad Faith when Its Insured Was Not Exposed to Liability In Excess of the Policy...

Cozen O'Connor on

The Third District Court of Appeals finding recently held that in certain circumstances, a third party can maintain a bad faith claim against an insurer even if the insured is not exposed to liability in excess of the policy...more

Cozen O'Connor

Reservation of Rights Letters Help Avoid Prejudice in the Third Party Context

Cozen O'Connor on

When discussing bad faith in the third party context, most of the discussion properly centers on the duty to settle a claim. However, other actions taken by a policyholder and carrier can have an impact. The recent case of...more

Cozen O'Connor

No Bad Faith Recovery Unless Insured Demonstrates Acts Were A Producing Cause Of Damages

Cozen O'Connor on

A jury found that Mid-Continent committed five separate violations of the Texas Insurance Code and awarded $2 million to the insured as compensation for the amount it paid to settle third-party claims. The trial court,...more

Cozen O'Connor

Finding Bad Faith in Kentucky Requires Evidence of Outrageous Conduct By Insurer

Cozen O'Connor on

In its recent decision in Powell v. Cherokee Insurance Company, Case No.: 5:09-CV-00205, the U.S. District Court for the Western District of Kentucky reaffirmed that in a third-party bad faith lawsuit alleging failure to...more

McCarter & English, LLP

When NJ Banks Are Liable For 3rd-Party Fiduciary Breach

Originally published in Law360, New York on January 29, 2013. Banks, broker/dealers and other financial institutions often are the subject of claims by noncustomer investors, businesses, and estate and trust...more

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