News & Analysis as of

Bad Faith Settlement

Rumberger | Kirk

Florida’s Evolving Bad-Faith Landscape: What Claims and Insurance Pros Need to Know

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Bad faith litigation has long posed both legal and reputational risks for insurers operating in Florida. With the enactment in 2023 of House Bill 837—a sweeping tort-reform measure—there are important changes to how insurers...more

McGuireWoods LLP

The Archdiocese Resurrects Faith in the New York Court System:  New York Supreme Court Issues Another Decision Allowing a New York...

McGuireWoods LLP on

Last month, the New York Supreme Court issued a well-reasoned order denying the Archdiocese’s insurers’ motion to dismiss its claim against them for breach of the covenant of good faith and fair dealing, holding that the...more

Searcy Denney Scarola Barnhart & Shipley

3 Key Issues for Florida Car Accident Victims: “No Fault” Insurance, Bad-Faith Insurance Practices and Partial Fault

When you get injured in a car accident, your legal rights are determined by Florida law. Due to some unique aspects of Florida law, understanding your legal rights is often easier said than done. With that said, understanding...more

Fox Rothschild LLP

NJ Supreme Court Holds Municipalities Can Be Sanctioned for Frivolous Litigation

Fox Rothschild LLP on

Municipalities are not immune from sanctions under the state’s Frivolous Litigation Statute, the New Jersey Supreme Court has ruled in an appeal that stemmed from affordable housing litigation. In a unanimous decision, the...more

Maison Law

Insurance Bad Faith Claims Following Car Accidents: When and Why They Arise

Maison Law on

Dealing with an insurance company after a car accident can be a real pain. Having to talk to an investigator (after you've already spoken with the police), wait months for a determination, and potentially get denied coverage...more

Carlton Fields

Divided Ninth Circuit Finds Claimant’s Failure to Provide Medical Records Insulates Insurer From Bad Faith Failure to Settle

Carlton Fields on

If at first you don’t succeed, try, try again. An age-old adage that now provides critical guidance for insurers seeking to protect themselves in the face of bad faith failure to settle claims....more

Kennedys

Eleventh Circuit expands Florida’s Powell Doctrine

Kennedys on

The Eleventh Circuit’s decision in Kinsale Insurance Company v. Pride of St. Lucie Lodge 1189, Inc., -- F.4th ----, 2025 WL 1142094 (11th Cir. Apr. 18, 2025), has significant implications for the good faith standard...more

Cozen O'Connor

The Latest On Louisiana’s Bad Faith and Claims-Handling Statutes

Cozen O'Connor on

On July 1, 2024, the widespread changes to Louisiana insurance law took effect after Governor Jeff Landry signed Senate Bill No. 323 into law as “Act No. 3” (hereafter, the “Act”). With the first anniversary of the Act...more

Marshall Dennehey

Employer’s Refusal to Compromise It’s Subrogation Lien During Pendency of a Tort Action Does Not Constitute Bad Faith Resulting in...

Marshall Dennehey on

Martha Garduno Mondragon v. Jo Jo Pizza (WCAB); No. 174 C.D. 2024; filed Jan. 6, 2025 - This case involved a claimant who sustained work injuries as a result of a slip and fall on ice in the employer’s parking lot. A Claim...more

Farella Braun + Martel LLP

Sometimes, Insurers Want To Settle!

This summary of a recently filed complaint illustrates one of the worst-case scenarios an insured defendant can find itself in: getting slapped with a verdict in excess of your liability insurance limits.  Here, it was an $11...more

McGuireWoods LLP

Xerox Obtains Important Pro-Policyholder Decision in New York’s First Department, Adopting Narrow Construction of “Arising From”...

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In March last year, New York’s Appellate Division – First Department issued Xerox an important pro-policyholder decision in its D&O insurance recovery action against Travelers, arising from Xerox’s failed 2018 merger with...more

Akerman LLP

Abracadabra – How a Stalking Bill Magically Turned into Revisions to a Georgia Settlement Statute

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In Georgia’s recent Legislative Session, Senate Bill 83 started off addressing the eligibility for restraining orders related to stalking, but there must have been some magic pixie dust floating around the House Committee...more

White and Williams LLP

New York Court Holds Insurer Can Recover Before Insured Is Made Whole

White and Williams LLP on

In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the...more

Adams & Reese

Deeper Dive into HB 837 – Potential Effects, Challenges of Wide-Ranging Florida Tort Reform Bill

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Last month, we provided an overview of Florida Tort Reform HB 837 - a wide-ranging tort reform bill ratified on March 24, 2023. With the stated goal of stabilizing the state’s insurance market, the bill’s sweeping provisions...more

Farella Braun + Martel LLP

More Stringent California Claim Law Could Benefit Policyholders

To combat a perceived litigation tactic by plaintiffs counsel of using settlement demands within policy limits to set up insurers for bad faith, insurance company associations lobbied for statutory clarification to avoid...more

Rumberger | Kirk

Breaking it Down: What Florida Insurers Need to Know about Bad Faith After Tort Reform

Rumberger | Kirk on

Bad-faith litigation is a hot topic in Florida following the passage of the new tort-reform measure known as House Bill 837. However, even in the face of reasonable legislative changes, it remains important for insurers and...more

King & Spalding

Southern District of Ohio Finds Bank’s Settlement of Fraudulent Transfer Claim Uninsurable

King & Spalding on

On December 16, 2022, the U.S. District Court for the Southern District of Ohio held that a settlement of a fraudulent transfer suit was not covered under the settling defendant’s insurance policies. Huntington National Bank...more

Rumberger | Kirk

Eleventh Circuit: Disagreement Over Valuation Is Not Per Se Bad Faith

Rumberger | Kirk on

A little more than one year after Progressive scored a bad faith win in Eres v. Progressive American Ins. Co., 998 F.3d 1273 (11th Cir. 2021), Progressive came away with another victory in Deary v. Progressive American Ins....more

Adams & Reese

Bad Faith on the Bayou

Adams & Reese on

The last few years have brought unprecedented hurricane seasons in the Gulf South, with Louisiana’s coastal communities bearing much of the impact. Those storms brought property damage; that property damage brought insurance...more

Butler Weihmuller Katz Craig LLP

Good Faith: Plaintiffs’ Complaints About Release Held Invalid

The United States Court of Appeals for the Eleventh Circuit recently addressed the issue of whether tendering a policy limits check on a liability policy with an overbroad release could constitute bad faith. In Pelaez v....more

Cozen O'Connor

Lack of Notice No Excuse for Failure to Settle

Cozen O'Connor on

An insurer can no longer claim its lack of notice of a lawsuit against its insured excuses it for failing to settle the suit after the Georgia Supreme Court’s recent decision in GEICO Indemnity Co. v. Whiteside, Case No....more

Wiley Rein LLP

Ninth Circuit Holds that Excess Carrier May Challenge Allocation of Primary Carrier’s Settlement that Resolves Both the Underlying...

Wiley Rein LLP on

Applying California law, the Ninth Circuit held that an excess insurer may challenge the allocation of an underlying settlement that resolves both an underlying claim against an insured and the insured’s coverage dispute with...more

Butler Weihmuller Katz Craig LLP

The Many Faces Of Multiple Liability Claims: Two Divergent Opinions From The Eleventh Circuit Court Of Appeal

The Eleventh Circuit Court of Appeals recently released two opinions involving multiple liability claims against an insured with insufficient policy limits.  Both cases involved appeals from summary judgment orders in bad...more

Greenberg Glusker LLP

Ninth Circuit Court of Appeal Rules that Excess Insurer Cannot Challenge Exhaustion of Underlying Insurance on Coverage Grounds

Greenberg Glusker LLP on

In Axis Reinsurance Co. v. Northrop Grumman Corporation, 2020 DJDAR 10114 (9th Cir. Sept. 14, 2020), a case of first impression under California law, the Ninth Circuit held that an excess insurer may not dispute exhaustion of...more

White and Williams LLP

How a Little-Known Senate Bill Could Help Stem the Tide of Bad Faith Litigation in Florida

On January 14, 2020, Senator Jeff Brandes (R) introduced Florida Senate Bill 1334: Financial Services (SB 1334)[1], which would add two additional requirements to Florida Statute 624.155’s civil remedy notice provision: ...more

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