SNR Denton on McReynolds v. American Commerce Insurance Co.: Interpleader as a Safe Harbor for Multiple Demands

By Ronald D. Kent, Partner, SNR Denton 1 McReynolds v. American Commerce Insurance Co. 2 presented an issue at a doctrinal intersection: multiple claims with inadequate limits and claims subject to liens. The court held that an insurer could meet its obligation to consider the multiple offers in...

CaseWatch: Insurance – Decisions from The Insurance and Reinsurance Report – May 23, 2011

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on lexisONE , if available. Bad Faith Miller v. Hartford Life Ins. Co. 2011 U.S. Dist. LEXIS 38347 [ lexis.com ] ( D. Haw., Apr. 7, 2011 ) Bad Faith and Punitive Damages...

CaseWatch: Insurance – Decisions from The Insurance and Reinsurance Report – May 23, 2011

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on lexisONE , if available. Bad Faith Miller v. Hartford Life Ins. Co. 2011 U.S. Dist. LEXIS 38347 [ lexis.com ] (D. Haw., Apr. 7, 2011) Bad Faith and Punitive Damages...

“Millions for Defense and not a Dime for Tribute.” Attempted Fraud Fails

By Barry Zalma, Attorney and Consultant Insurers Must Never Pay a Fraud When I was a young adjuster the motto of the insurance industry was "Millions for Defense and not a Dime for Tribute." Fraud was known but not a large problem. Police officers, when advised of fraud, would investigate...

Blogs from the ILC Advisory Board: Richards v. Sequoia Insurance Co.: Liability Insurer Not Obliged to Compensate Insureds for Defending Themselves While Insurer Is Considering Whether To Provide Defense

By William T. Barker, Partner, SNR Denton In Richards v. Sequoia Insurance Co. ,[1] insured attorneys, who were instructed to arrange for their own defense pending Sequoia's coverage decision, retained counsel on the basis that the insureds would do most of the investigation, legal research,...

No ERISA Preemption for Unfair Insurance Practices in Montana

By Barry Zalma, Attorney and Consultant In 1987 the U.S. Supreme Court decided Pilot Life Insurance Co. V. Dedeaux, 481 U.S. 41, 95 L. Ed. 2d 39, 107 S. Ct. 1549 (U.S. 04/06/1987) , that held that the Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. 829, as amended, 29 U. S. C. §...

CaseWatch: Insurance – Decisions from The Insurance and Reinsurance Report – December, 2011

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on lexisONE , if available. Actions and Proceedings C.R. Pittman Constr. Co., Inc. v. Nat'l Fire Insurance Co. 2011 U.S. App. LEXIS 20002 [ lexis.com / lexisONE...

Neal, Gerber & Eisenberg LLP: Comparing Illinois versus California Bad Faith Law

By Jill Berkeley, Partner, Neal, Gerber & Eisenberg LLP As policyholder counsel in Illinois, we often must explain to our colleagues in California why there is no "bad faith" cottage industry among the Illinois bar. Taking the words right out of my mouth, a California court in a recent...

Missouri Federal Court Rejects Bad Faith Claim

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In its recent decision in Hullverson v. Liberty Ins. Underwriters , 2013 U.S. Dist. LEXIS 101640 (E.D. Mo. July 22, 2013) [ enhanced version available to lexis.com subscribers ], the United States District Court for the Eastern...

California Court Holds No Affirmative Duty to Settle Based Solely on the Likelihood of an Excess Judgment

By Ryan C. Tuley , William D. Burger, Jr. , and Christina Y. Ahn On October 7, 2013, the California Court of Appeal, in Reid v. Mercury Insurance Company [ enhanced version available to lexis.com subscribers ], held that an insurer does not have an affirmative duty to settle based solely on the...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Alaska Supreme Court: Demand To Settle For Limits, But Not For All Insureds, Insurer Between A Rock And A Hard Case

It is the proverbial “damned if you do and damned if you don’t” situation for insurers. An insurer is presented with a policy limits demand to settle for one insured – and it should be accepted based on liability and damages considerations -- but the settlement offered will not...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Missouri Supreme Court: Policy Limits “Do Not Matter”

Trend: Harsh Consequences For Breach Of The Duty To Defend I’ve always found it interesting that some very important coverage issues elude judicial review, while inconsequential ones get answered. Riddle me this: Why has the question whether bat guano is excluded by the pollution exclusion...

Washington Court Holds Covenant Judgment Sets a Floor, Not a Ceiling, on Damages

By Matthew J. Sekits , Daniel R. Bentson . Recently, the Washington Court of Appeals increased the damages available to an assignee of an insured's bad faith claims, holding that a "covenant judgment sets a floor, not a ceiling, on the damages a jury may award." In other words, the...

Federal: Carrier’s Subrogation Claim May Not Be Removed to Federal Court

The Fifth Circuit Court of Appeals held the issue of whether a workers’ compensation insurance carrier was entitled to subrogation following a settlement between a third party and the insurance beneficiary employee arose under the Texas Workers’ Compensation Act and, therefore, the matter...