Two recent cases have addressed insurance company extracontractual exposure for failing to initiate settlement negotiations. In Stalley v. Allstate Insurance Co., 2016 WL 1752764 (M.D. Fla. April 29, 2016) the court considered the so-called “Powell rule” where the...
Insurance Law
MASSACHUSETTS SUPREME JUDICIAL COURT FOLLOWS THE MINORITY RULE IN ESTABLISHING PRIORITY OF COVERAGE BETWEEN TRUE EXCESS POLICIES AND DE FACTO EXCESS POLICIES IN THE AUTOMOBILE LIABILITY CONTEXT
As an issue of first impression, the Massachusetts Supreme Judicial Court adopted the minority rule on priority of coverage, holding that after a primary automobile liability policy is exhausted, true excess policies and policies that are excess by virtue of other...
OHIO SUPREME COURT DETERMINES THE ACCRUAL OF THE STATUTE OF LIMITATIONS FOR FAILURE TO PROCURE INSURANCE CASES BROUGHT AGAINST AGENTS
A divided Ohio Supreme Court recently held that in lawsuits brought against insurance agents for negligent failure to procure insurance, the statute of limitations in Ohio begins to run when the policy is issued. In LGR Realty, Inc. v. Frank & London Ins. Agency,...
OHIO SUPREME COURT DETERMINES THE ACCRUAL OF THE STATUTE OF LIMITATIONS FOR FAILURE TO PROCURE INSURANCE CASES BROUGHT AGAINST AGENTS
A divided Ohio Supreme Court recently held that in lawsuits brought against insurance agents for negligent failure to procure insurance, the statute of limitations in Ohio begins to run when the policy is issued. In LGR Realty, Inc. v. Frank & London Ins. Agency,...
RHODE ISLAND SUPREME COURT ENFORCES SUIT LIMITATION PROVISION IN POLICY
In the past, Rhode Island courts have upheld insurance policy provisions that require insureds to commence legal action against the insurance company within a time period that is less than the legislatively-enacted statute of limitations. See, e.g., National...
Taxable Cost Award Capped by Insurance Policy Limits According to the Minnesota Supreme Court
Under Minn. Stat. §604.18, insureds are entitled to recover taxable costs when an insurance company unreasonably denies insurance benefits. The statute provides a remedy of one-half of the “proceeds awarded” that are in excess of an amount offered by the insurer or...
MASSACHUSETTS BAD FAITH STATUTE DOES NOT INCLUDE PRE-JUDGMENT INTEREST IN THE MULTIPLIER
The Massachusetts Supreme Judicial Court held in Anderson v. National Union Fire Insurance Co. Pittsburgh, PA 476 Mass. 377, 67 N.E. 3d 1232 (2017) that post-judgment interest on a judgment against a driver and owner were not part of the damages to be trebled under...
FAILURE TO KEEP IME DOCTOR UPDATED ON PLAINTIFF’S CONDITION CAN FORECLOSE APPLICATION OF GENUINE DISPUTE DOCTRINE FOR MSJ PURPOSES
California courts have adopted the Genuine Dispute Doctrine. Chateau Chamberay Homeowners Assn v. Associated Internat. Ins. Co., (2001) 90 Cal. App. 4th 335, 347, 108 Cal. Rptr. 2d 776 (“[A]n insurer denying or delaying the payment of policy benefits due to the...
IN ILLINOIS DISPARAGEMENT IS NOT “PATENT PENDING”
Some insurance policies do not specifically define the term “disparagement” in the policy. When the term “disparagement” is not defined, the courts will come up with a workable definition. As an example, in Lexmark International, Inc. v. Transportation Insurance...
THE FIRST CIRCUIT FINDS THAT THE FILING OF A COUNTERCLAIM DID NOT CREATE A CONFLICT OF INTEREST FOR THE DEFENSE ATTORNEY HIRED BY THE INSURANCE COMPANY
In Mt. Vernon Fire Ins. Co. v. Vision Aid, Inc., 875 F.3d 716 (1st Cir. 2017) (interpreting Massachusetts law), the First Circuit Court of Appeals found that the mere filing of a counterclaim did not create a conflict of interest for defense counsel. In this case, the...
