LexisNexis® Legal Newsroom
Chapter Abstract for New Appleman Insurance Bad Faith Litigation, Second Edition: Chapter 8 Defenses to Bad Faith Claims

By William T. Barker, Partner, SNR Denton Chapter 8 addresses defenses which insurers might assert in addition to their attempts to negate insureds’ claims that the insurer breached contractual duties ordinarily imposed as part of the duty of good faith and fair dealing. Section 8.02[1...

Blogs From the Advisory Board: Insurer Potentially Liable To Investor in Ponzi Scheme Where Insurer Ignored Known Misrepresentations by Its Insured, Investment Company

By Daniel W. Gerber, Partner, Goldberg Segalla LLP Ivie v. Diversified Lending Group, Inc., Case No. 1:09-CV-751, 2011 U.S. Dist. LEXIS 27680 (W.D. Mich., Mar. 17, 2011) Plaintiff, Ivie, invested $2.2 million in a "guaranteed" 9% interest-earning note issued by DLG. DLG represented...

SNR Denton on Is There a Right To Jury Trial in a Bad Faith Failure To Settle Case: Wood v. New Jersey Manufacturers Insurance Co.

By William T. Barker, Partner, SNR Denton In Wood v. New Jersey Manufacturers Insurance Co. the New Jersey Supreme Court, addressing a little-litigated issue, held that there is a right to jury trial in a bad faith failure to settle case. [1] This commentary examines that holding. NJM insured...

Ninth Circuit Affirms Dismissal of Breach of Contract, Washington Consumer Protection Act and Insurance Fair Conduct Act Claims Against Boiler & Machinery Insurer.

By Stuart D. Jones , Shareholder, Bullivant Houser Bailey PC. On September 2, 2011, the 9 th Circuit Court of Appeals issued a memorandum opinion in Cowiche Growers, Inc. v. Continental Casualty Company , U.S. Court of Appeals No. 10-36072 (9 th Cir., Sept. 2, 2011) that affirmed a summary judgment...

Boiler and Machinery Policy Did Not Cover Apples Exposed to Ammonia Refrigerant In Warehouse

By Stuart D. Jones, Shareholder, Bullivant Houser Bailey PC The 9th Circuit Court of Appeals has issued a memorandum opinion in Cowiche Growers, Inc. v. Continental Casualty Company, 2011 U.S. App. LEXIS 18420 (9th Cir. Wash., Sept. 2, 2011) , that affirmed a summary judgment the Honorable Rosanna...

Eighth Circuit Holds Claim Against General Contractor Not an Occurrence

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In its recent decision in Secura Ins. v. Horizon Plumbing , 2012 U.S. App. LEXIS 4477 (8 th Cir. Mar. 5, 2012), the United States Court of Appeals for the Eighth Circuit, applying Missouri law, considered whether an underlying breach...

Class Action Certified for Lender Requiring More Flood Insurance

THE MISCHIEVIOUS CLASS ACTION Home mortgage lenders are always concerned that their security is appropriately protected by insurance. As a result, by the terms and conditions, of the mortgage the lender keeps to itself the right to compel the borrower to buy sufficient insurance. In Stanley Kolbe v...

First Circuit Rules Constitution's Appropriations Clause Quashes Flood Policy Claim Lacking Proof-of-Loss

By J. Wylie Donald You know it is not going well when the court cites the Constitution at you in a breach of contract case. But so it went in DeCosta v. Allstate Insurance Co. [ enhanced version available to lexis.com subscribers ], where the First Circuit last month reversed the trial court...

Insurer Has No Duty to Pay for Independent Counsel and May Reassert Its Right to Control the Defense When the Insurer Withdraws the Reservation of Rights Triggering the Insured’s Right to Independent Counsel

Swanson v. State Farm General Insurance Co., 2013 Cal. App. LEXIS 759 [ enhanced version available to lexis.com subscribers ], presented an issue of first impression regarding whether an insurer has a duty to provide an insured with independent counsel, pursuant to California Civil Code section 2860...

Policy Requiring a Carrier to Investigate and Defend “Suits” Does Not Require It to Investigate and Defend Claims That Have Not Ripened Into Litigation

Great Am. E&S Ins. Co. v. Kouw Pinnq Enter. Co. , 2013 U.S. Dist. LEXIS 146247 (C.D. Cal. Sept. 20, 2013) [ enhanced version available to lexis.com subscribers ] In Great American , the district court held that a general liability insurer did not have an obligation to investigate, defend, or indemnify...

No Reasonable Person Would Believe Contract Exclusion Applies to Wrongful Eviction

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP In John Doyle Trust, et al. v. Country Mutual Insurance Co ., 2014 IL App (2d) 121238, [ enhanced version available to lexis.com subscribers ], the Illinois appellate court affirmed summary judgment entered against Country Mutual, finding...

The Importance of Proof of Mailing: If Premium Not Paid, Policy Cancelled

Insurance is, by definition, a contract whereby the insurer, for consideration, agrees to defend or indemnify another against a contingent or unknown risk. For an insurance policy to exist, therefore, the person insured must pay the premium (the consideration) charged by the insurer. States, like Florida...

Trial Court Finds Claim for Bad Faith May Survive a Motion to Dismiss Despite Failure to Properly Plead Claim for Breach of Contract

Mortazavi v. Federal Ins. Co. , 2014 U.S. Dist. LEXIS 31555 (S.D. Cal. Mar. 11, 2014), [ enhanced version available to lexis.com subscribers ]. In Mortazavi , the district court found in favor of a carrier on its motion to dismiss the insureds’ claim for breach of contract, but found that the...

Dentons on Taylor v. Allstate Insurance Co.: When Is a Texas Liability Insurer Liable for Inadequate Defense of a Case?

In Taylor v. Allstate Insurance Co.,[1] a Texas court of appeals held that the only common-law tort causes of action available against a liability insurer for allegedly inadequate defense of its insured are breach of contract and a Stowers[2] (failure to settle) claim, but that a contract claim might...

How to Defeat an Arson for Profit Attempt – Suspected Arsonist’s Bad Faith Suit Fails

Arson-for-profit is the most dangerous of all methods of attempting insurance fraud. When an insurer has sufficient evidence to suspect an arson for profit attempt and denies the claim it will expect that the insured will sue the insurer for fraud and bad faith. The best way to defeat such an action...

Claimant’s Assignee Unable to Pursue Breach of Contract Claim against Carrier Because the Claimant Did Not Assert His Claim during the Policy Period

In Petersen Arch Ins. Co. , the Central District of California granted the carrier’s motion to dismiss and held that the claimant’s assignee could not pursue a breach of contract claim against the carrier because the claimant did not make a claim against the insured attorney during the policy...