LexisNexis® Legal Newsroom
James M. Hofert and Jennifer K. Gust on “Time-Sensitive Demands”

In their article appearing in the March/April 2010 issue of Coverage, "Time-Sensitive Demands," James M. Hofert and Jennifer K. Gust initially describe the debate as to the legitimacy of time-sensitive demands. Such a demand is a settlement offer made by an underlying plaintiff that the defendant's...

SNR Denton on Reasonableness of Insurer’s Delay in Offering Policy Limits Is Question of Fact: Allstate Insurance Co. v. Herron

By Ronald D. Kent, Partner, SNR Denton In Allstate Insurance Co. v. Herron, [1] Allstate had offered its policy limits, but not until after expiration of a time-limit demand. A jury found that Allstate had acted reasonably, and the Ninth Circuit affirmed in pertinent part. It found no abuse of discretion...

Duty to Settle Requires a Willing Plaintiff – No “Bad Faith” Failure to Settle

By Barry Zalma, Attorney and Consultant In March I posted an article on the need to put a stake through the heart of the tort of bad faith . The post that follows deals with a case that supports the position I took in that post and makes me wonder why more courts don't recognize the inequity...

Another Item For Your Checklist: The Bad Faith Concerns Related To Overreaching Proposed Releases

By David A. Mercer A common scenario: claimant's counsel issues a time limit demand for policy limits and the insurer decides to accept the demand and tender the limits. Once the decision is made to accept the demand, the insurer should go through its checklist of concerns to make sure that each...

Insurer Between a Rock and a Hard Case: Limits Demand That Does Not Release All Insureds

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...

Insured Not Required to Plead Existence of a Within-Limits Settlement Demand in Order to State a Claim for Bad Faith Failure to Settle

In Aspen Specialty Ins. Co. v. Willis Allen Real Estate , the district court denied a liability carrier’s motion to dismiss an insured’s bad faith claim for failure to effectuate a settlement within policy limits despite the fact that the complaint failed to allege a within-limits demand...