Extra-Contractual Liability

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A Florida appeals court recently ruled that while a state statute provides for the award of “reasonably foreseeable” damages resulting from insurer bad faith, a jury is not free to award such damages without any supporting evidence. …
Read More Florida State Appeals Court Reverses Jury Award of Bad Faith Damages

In Perera v. United States Fidelity & Guaranty Co., No. 06-10925, 2008 Westlaw 4514388 (11th Cir. Oct. 9, 2008), the Court of Appeals for the Eleventh Circuit certified two,  interrelated questions concerning bad faith to the Florida Supreme Court: (1) whether an insured can bring a bad faith claim if an excess judgment was not entered against him; and, if so, (2) whether the claim can be maintained if the insurer’s actions did not even expose the insured to   potential  liability in excess of aggregate policy limits. 

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Read More Eleventh Circuit Certifies Questions as to Whether Insured Can Maintain Bad Faith Claim Without Ever Having Been Exposed to Liability in Excess of Policy Limits

A Florida federal district court recently held that an appraiser’s finding that an insurer’s settlement of a property claim was too low cannot, by itself, sustain a cause of action for statutory bad faith. 

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Read More Florida Federal Court: Appraiser’s Finding That Insurer’s Calculation of Loss Was Too Low Is Insufficient to Support Statutory Bad Faith Claim

An Indiana federal district court recently granted summary judgment on the ground that an insurer had no duty under a CGL policy to indemnify its insured, a general contractor, in a suit premised on alleged faulty workmanship of the insured’s subcontractors. …
Read More Damages Caused To Component Parts By Subcontractors’ Deficient Work Is Not “Property Damage” Caused By An Occurrence”

The U.S. District Court for the Central District of California recently denied a motion to strike and allowed a plaintiff to pursue treble punitive damages against his insurer for the insurer’s alleged bad faith. 

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Read More California Federal Court: Insured Plaintiff Can Seek Treble Punitive Damages For Insurer’s Alleged Bad Faith

The Federal District Court for the District of Puerto Rico recently issued a 58-page decision on post-trial motions in which it extensively discussed Puerto Rico law concerning insurer bad faith and consequential damages in the context of an alleged bad faith denial of coverage. …
Read More Puerto Rico Federal Court Examines Issues of Bad Faith (“Dolo”) and Consequential Damages in Insurance Coverage Disputes

The Supreme Court of Alabama recently reversed summary judgment in favor of an insurer on an “abnormal” bad faith claim, ruling that genuine issues of material fact existed as to whether the insurer failed to properly investigate the insured’s claim and failed to investigate the condition of the insured’s house prior to the hurricane that allegedly caused the damage. 

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Read More Supreme Court of Alabama: “Abnormal” Bad Faith Claim Improperly Dismissed

The Chilean legislature was recently presented with a draft law designed to modernize the insurance and reinsurance provisions contained within Chile’s Code of Commerce.  If enacted, the legislation would replace Chile’s current laws concerning private insurance and reinsurance in their entirety. 

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Read More Chile Considers Legislation To Modernize Its Insurance and Reinsurance Laws