Breach of Reinsurance Contract and Bad Faith Claims Survive Dismissal, District Court Rules

In Old Republic National Title Insurance Co. v. First American Title Insurance Co., 2015 U.S. Dist. LEXIS 44693, the U.S. District Court for the Middle District of Florida refused to dismiss portions of a cedent’s breach of contract claim, bad faith claim, and demand for declaratory judgment against a reinsurer. The reinsurance dispute arose when a cedent negotiated a $41 million settlement with the underlying insured, and the reinsurer paid its portion of the claim under a reservation of rights. After making its payment, …

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Arizona Appellate Court Refuses To Vitiate the Attorney-Client Privilege When Insurer Does Not Advance Defense Based on Advice of Counsel

In Everest Indemnity Insurance Co. v. Rea, 2015 Ariz. App. LEXIS 9 (Ariz. Ct. App. Jan. 15, 2015), an Arizona appellate court held that Everest Indemnity Insurance Company (“Everest”) had not waived its attorney-client privilege by admitting that it had settled a case in good faith after consulting with counsel. As background, Rudolfo Brothers Plastering and Western Agriculture Insurance Company (collectively “Rudolfo”) alleged that Everest committed bad faith by entering into a settlement agreement that exhausted the liability coverage of an Owner Controlled Insurance …

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Insurer’s Reliance on Prior Unpublished Decision Sufficient To Defeat Bad Faith Claim

In Badiali v. New Jersey Manufacturers Insurance Group, 2015 WL 668206 (N.J. Feb. 18, 2015), the New Jersey Supreme Court found that an uninsured motorist carrier did not commit bad faith by acting in accordance with an unpublished decision from a case it previously litigated.

The policyholder was involved in a car accident with an uninsured motorist. He filed an uninsured motorist claim with his employer’s insurer and his personal insurer. The matter was arbitrated, and the policyholder was awarded $29,148.62. The personal insurer …

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District Court Sleuthing Around Policy Numbering Undermines Insurer’s Motion for Summary Judgment

In Connolly v. Progressive Northern Insurance Co., et al., No. 3:13-cv-2717, 2015 WL 464877 (M.D. Penn. Feb. 4, 2015), the United States District Court for the Middle District of Pennsylvania denied Progressive Northern Insurance Company’s (“Progressive”) motion for summary judgment regarding whether the plaintiff could stack underinsured motorist coverage limits and whether the insurer had engaged in statutory bad faith.

Plaintiff was involved in a motor vehicle accident in February 2009.  The third party tortfeasor paid plaintiff his $250,000 policy limit.  Plaintiff subsequently made …

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PA High Court Gives Green Light to Assignment of Bad Faith Claims

In Allstate Prop. & Casualty Insurance Co. v. Wolfe, No. 39 MAP 2014, 2014 Pa. LEXIS 3309 (Pa. Dec. 15, 2014), the Pennsylvania Supreme Court, in deciding a certified question from the Third Circuit, ruled that statutory bad faith claims under 42 Pa. C.S.A. § 8371 are assignable.

The underlying dispute arose from a motor vehicle collision involving an intoxicated driver, Zierle, who was insured by Allstate.  After settlement attempts failed, Wolfe, the tort claimant, sued Zierle for compensatory and punitive damages.  Following a …

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CaseWatch: Insurance and Bad Faith Focus, January 2014 Editions Now Available

Please click for the latest edition of CaseWatch Insurance.

CaseWatch: Insurance provides timely summaries of and access to insurance law decisions and legislation.  For ease of reference, we have organized cases by topic.

Please click for the latest edition of Bad Faith Focus.

Bad Faith Focus provides timely summaries of and access to key bad faith litigation matters throughout the United States.

CaseWatch and Bad Faith Focus is the collaborative effort of Goldberg Segalla’s Global Insurance Services Practice Group. We appreciate your …

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Cases for the September 2013 Edition of CaseWatch: Insurance and Bad Faith Focus

Cases provided courtesy of LexisNexis.

CaseWatch: Insurance Cases

Admiral Ins. Co. v. Shah & Associates

Admiral Insurance Company v. Marsh

Alabama Gas v Travelers

Aleman v. Ace Am. Ins. Co.,

Allstate Ins. Co. v. Nassiri

Attorneys Liability Protection Society, Inc. v. Whittington Law Associates, PLLC

Automax Hyundai South, L.L.C. v. Zurich Am. Ins. Co.

Ba v. HSBC USA, Inc.

California Ass’n of Rural Health Clinica; Avenal Community Health Center v. Douglas

City of San Buenaventura v. Ins. Co.

Colonial Oil Industries, Inc. v. Indian Harbor

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New York Court Predicts California’s Future: Allows Bad Faith Exception in Reinsurance Late Notice Defense

Ins. Co. of the State of Penn. v. Argonaut Ins. Co.
U.S. Dist. Ct., S.D.N.Y. (August 6, 2013)

In this case, the cedent sued its reinsurer when it denied coverage because of late notice of its claim.  Both parties filed a motion for summary judgment arguing the applicability of the late notice defense.  The court granted the reinsurer’s motion.

From 1980-2009, a series of disputes and negotiations arose regarding asbestos claims against the underlying insured.  It was not until 2009, through an “initial loss advice,” …

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