In The Home Loan Investment Co. v. St. Paul Mercury Ins. Co., 827 F.3d 1256 (10th Cir. 2016), the Tenth Circuit Court of Appeals held that a property insurance company's denial of a fairly debatable claim was not per se reasonable. The insurer, St. Paul Mercury Ins....
Bad Faith
INSURANCE COMPANIES HAGGLING OVER RELEASE LANGUAGE CAN RESULT IN BAD FAITH LIABILITY
In Barickman v. Mercury Cas. Co., 2 Cal.App.5th 508, 206 Cal.Rptr.3d 699 (2d Dist. 2016), an insurance company's refusal to consent to additional release language which was designed to preserve the claimant's rights to receive criminal restitution from the insured...
SECOND CIRCUIT HOLDS THAT ADVERTISING INJURY COVERAGE DOES NOT APPLY TO THE SALE OF COUNTERFEIT BRANDED GOODS
The United States Second Circuit Court of Appeals recently held that the selling of goods with a counterfeit brand label did not constitute covered advertising injury. In U.S. Fidelity & Guar. Co. v. Fendi Adele S.R.I., 823 F.3d 146 (2d Cir. 2016), the insured,...
The Ninth Circuit Court Of Appeals Finds That The Absence Of A Litigated Judgment Did Not Preclude An Equitable Subrogation Claim From Being Brought By An Excess Insurer For Bad Faith Failure To Settle
In RSUI Indemnity Co. v. Discovery P&C Ins. Co., 649 Fed.Appx. 534 (9th Cir. 2016), the primary insurer unreasonably had refused to pay a settlement demand within policy limits. In order to achieve a settlement, the excess insurer paid a portion of the settlement...
In A Self-Evident Decision, The Eighth Circuit Court of Appeals Recently Held That An Insurance Company’s Failure To Re-Evaluate A Case Value After The Trial Court Eliminated A Key Affirmative Defense Justified A Bad Faith Failure To Settle Verdict
The Eighth Circuit Court of Appeals in Bamford, Inc. v. Regent Ins. Co., 822 F.3d 403 (8th Cir. 2016), held that the District Court had properly denied an insurance company's post-verdict motions challenging the jury's verdict in a bad faith failure to settle case and...
Robocalls Are Covered By CGL Policy According To Florida Court
The Florida Court of Appeals in Old Dominion Ins. Co. v. Stellar Concepts & Design, Inc., 189 So.3d 293 (Fla. App. 2016) held that a CGL policy covered liability for the insured's placing robocalls in violation of state law. The Court found that the policy's...
The California Supreme Court Finds That In Determining Whether A Punitive Damage Award Is Unconstitutionally Excessive, The Court Could Take Into Consideration As The Compensatory Damage Component In An Insurance Bad Faith Case The Award Of Attorney’s Fee
In a well-reasoned decision, the California Supreme Court held in Nickerson v. Stonebridge Life Ins. Co., 63 Cal.4th 363, 203 Cal.Rptr.3d 23, 371 P.3d 242, (2016), that a trial court could give consideration to an award of attorney's fees in favor of the insured, in a...
Arizona Court Finds That A Public Works Payment Bond Surety Cannot Be Held Liable For Bad Faith Failure To Investigate Because The Surety’s Duties And Obligations Are Limited To Those Which Are Enumerated In Arizona’s Public Works Bonding Act.
In S&S Paving and Constr., Inc. v. Berkley Regional Ins. Co., 239 Ariz. 512, 372 P.3d 1036 (Ct. App. 2016) , the Arizona Court of Appeals considered whether a surety could be sued by a subcontractor for bad faith failure to investigate when the surety issued a...
When Things Change, Re-Evaluate
In a fact intensive decision, the United States Eighth Circuit Court of Appeals in Bamford, Inc. v. Regent Ins. Co., 822 F.3d 403 (8th Cir. 2016), held that a fact question existed as to the insurance company's failure to settle a claim notwithstanding that the...