Extra-Contractual Liability

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The Eleventh Circuit federal Court of Appeals recently affirmed summary judgment in favor of an automobile insurance company, finding that no reasonable jury could conclude that the insurer had acted in bad faith by offering the policy limits to an accident victim 33 days after the accident. 

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Read More Eleventh Circuit: As a Matter of Law, Auto Insurer’s Settlement 33 Days After Accident Is Not Bad Faith

A Mississippi Federal Court recently refused to remand a case after concluding that the plaintiff improperly joined two insurance agents to a lawsuit to destroy diversity jurisdiction. …
Read More Mississippi Federal Court Dismisses Claims Against Insurance Agents Upon Finding They Were Brought To Destroy Diversity

A New York trial court recently denied an insurer’s motion to dismiss the insured’s claim of consequential/extra-contractual damages for pain and suffering and held that the insured may proceed with discovery to explore whether the insurer’s denial of benefits violated the duty of good faith and fair dealing. …
Read More NY Court Extends Availability of Consequential Damages to No-Fault Insurance Cases

An Illinois federal court recently held that an insured’s bad faith claim fell within the scope of an arbitration provision contained in a D&O Policy and therefore granted the insurer’s motion to compel arbitration. …
Read More Federal Court Rules that Bad Faith Claim Falls Within Scope of Arbitration Clause in D&O Policy

The United States Court of Appeals for the Fifth Circuit recently vacated a portion of a November 2007 ruling against State Farm Fire and Casualty Company, in which plaintiffs Judy and Michael Kodrin were awarded damages arising out of State Farm’s alleged bad faith failure to timely pay their claim for Hurricane-Katrina related wind damage. 

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Read More Fifth Circuit Vacates Portion of Katrina-Related Judgment that Awarded Penalties, Damages and Attorneys’ Fees Based on an Insurer’s Alleged Bad Faith

The United States District Court for the Northern District of Indiana recently held that the insureds’ misrepresentation claim against its insurance agent was a viable claim under Indiana law and was distinct from claims that the insurer adjusted their claim in bad faith. 

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Read More Indiana Federal Court Recognizes Cause of Action Against Insurance Agent as Distinct From Claims That Insurer Acted in Bad Faith

On November 24, 2008, Duke University and its affiliate, Duke University Health Systems, Inc. (“DUHS”; collectively with Duke University, “Duke”) filed a federal action alleging that Duke’s insurer had acted in bad faith and breached its contractual duty to advance and pay Duke’s defense costs, to indemnify Duke, and to pay settlements agreed to by Duke in connection with various claims and lawsuits arising from the indictment of three members of the Duke University 2005-2006 men’s lacrosse team (the “Duke Three”) on charges of sexual assault. …
Read More Duke University and Its Insurer Dispute Whether Insurer is Liable for Defense Costs and Indemnification Relating to Duke Lacrosse Rape Case and Settlements

The maker of the Bratz line of dolls and toys recently filed suit against its commercial general liability insurer in the Central District of California alleging wrongful refusal to defend it in a lawsuit by Mattel. 

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Read More Bratz Doll Maker Sues CGL Insurer Demanding Coverage for Defense of Lawsuit By Mattel Based on Trade Disparagement Claim