The Connecticut Supreme Court recently overturned a $34.7 million judgment against The Hartford Fire Insurance Company (“Hartford”) in a class action suit filed by over 1000 auto body repair shops alleging unfair trade practices by Hartford for paying the shops well below their hourly rates.

In 2009, a jury awarded
Read More Connecticut High Court Overturns $35 million CUTPA Verdict in Auto Body Rate Case

Until last week, Indiana courts were strict in their treatment of an insurance bad-faith lawsuit. Not only must the plaintiff show ill will by the insurer, he must show that the insurer denied coverage wrongfully. E.g., Foster v. State Farm Fire & Cas. Co., no. 1:10-cv-20 (N.D. Ind. Aug. 17, 2011). 
Read More An Indiana Court Allows a Bad-Faith Claim Even Though the Insurer Denied Coverage Correctly

The Court of Appeals of Texas recently held that a third-party claimant does not have standing to assert claims against a commercial general liability insurer.
Read More The Court of Appeals of Texas Holds Third-party Claimant Lacks Standing to Sue Commercial General Liability Insurer

On October 7, the California Court of Appeal, Second Appellate District, held that a liability insurer, in the absence of any demand or settlement offer from a third party claimant, need not initiate settlement negotiations or offer its policy limits, even where liability is clear and there is a substantial likelihood that the third party claimant’s recovery will exceed policy limits. 
Read More California Appellate Court Issues Bad Faith Duty to Settle Opinion

On Friday, the Massachusetts Appeals Court handed down its decision in Rivera v. Commerce Insurance Company, No. 12-P-483 (Aug. 16, 2013). The insurance industry should take note of this unfair claim settlement practices case because the court determined that Commerce Insurance Company was liable for the plaintiffs’ tort-related litigation expenses following what was determined to be a bad-faith and unreasonable settlement offer, and proceeded to note precisely what constituted “tort-related litigation expenses.” A copy of the decision is available through the court’s website
Read More Massachusetts Appeals Court Affirms Insurer’s Liability For Tort-Related Litigation Expenses In Unfair Claim Settlement Practices Case

In Osbourne Renfrow v. Redwood Fire and Casualty Ins. Co., et al., 288 F.R.D. 514 (D. Nev. 2013), the U.S. District Court, District of Nevada recently denied an insurer’s motion to bifurcate breach of contract and bad faith claims into two separate proceedings. The court ruling arose out of an underinsured motorist (UIM) claim involving Plaintiff Osbourne Renfrow, who was involved in an accident with an underinsured motorist, causing injuries to Renfrow’s neck, back and shoulders. 
Read More Court Denies Insurer’s Motion to Bifurcate Breach of Contract and Bad Faith Claims

For insurers doing business in Florida, a recent appellate court decision reaffirms the importance of a timely offer of settlement even in extremely challenging conditions to protect against bad-faith liability. 
Read More Florida Appellate Court Decision Increases Pressure On Insurers To Settle Claims In Order To Avoid Potential Bad Faith

Washington State just became even more hostile to insurers. Recently, the state’s highest court issued two decisions that will make claims-handling yet more difficult in the Evergreen State and that are in opposition to the majority view in U.S. jurisdictions. 
Read More Washington Supreme Court Issues Two Anti-Insurer Decisions

The Texas Supreme Court recently issued its landmark opinion in the rehearing of Texas Mutual Insurance Co. v. Ruttiger, No. 08-0751 (Tex. June 22, 2012).  The opinion was originally issued on August 26, 2011, but was withdrawn after the Court granted the parties’ motion for a rehearing on February 17, 2012. 
Read More Texas Supreme Court Holds that Workers’ Compensation Carriers are Not Subject to Common Law Bad Faith Claims

On May 31, 2012, in an anticipated opinion, the Florida Supreme Court resolved five certified questions from the United States Court Appeals for the Eleventh Circuit in a case styled Chalfonte Condominium Apartment Association, Inc. v. QBE Insurance Corporation, Case. No. SC09-441.  The case involves Hurricane Wilma damage sustained to Boca Raton, Florida condominium property owned by the insured. 
Read More Florida Supreme Court Answers Certified Questions from Eleventh Circuit In Anticipated Hurricane Related Bad Faith Opinion