In April 2008, Minnesota’s Legislature passed a bill enacting Minnesota Statues Section 604.18, often referred to as Minnesota’s “Good Faith Law,” which creates a cause of action for first-party bad faith. Under section 604.18, an insured can seek damages from his or her own insurer if the insurer does not act in good faith when … Continue Reading
The Colorado Supreme Court issued two opinions favorable to Colorado policyholders earlier this week: American Family Mutual Insurance Company v. Barriga; and Rooftop Restoration, Inc. v. American Family Mutual Insurance Company. Both cases address the unreasonable delay or denial of insurance benefits statute in Colorado. This post addresses the Barriga opinion, and the Rooftop Restoration, … Continue Reading
Last month, a New York Supreme Court affirmed that insurance companies are subject to that state’s consumer protection law, General Business Law § 349. In 37 West 24th Street, LLC v. Seneca Insurance Company, Inc., the trial court denied Seneca Insurance Company’s motion to dismiss the plaintiff’s claim under that statute.1… Continue Reading
On Friday, April 13, 2018, by avoiding black cats, ladders, and breaking mirrors, seven members of the Texas Supreme Court1 managed to issue a new, sixty-six page opinion in USAA Texas Lloyds Company v. Menchaca (“Menchaca II”).2 Withdrawing its April 7, 2017, opinion3 —”Menchaca I”—the court unanimously reaffirmed the five legal principles and rules announced … Continue Reading
Last month, a Washington State Court of Appeals ruled that individual insurance adjusters may be personally liable for violations of Washington’s bad faith statute, RCW 48.01.030. The court also ruled that adjusters may be personally liable for violations of Washington’s Consumer Protection Act, RCW 19.86.020.1… Continue Reading
Bad faith and consequential damages has long been a thorn in the New York plaintiff attorney’s side as they are virtually impossible to recover in most breach of contract actions. Recently, one plaintiff was able to recover attorney’s fees and costs by meeting the stringent standard set forth by New York case law.… Continue Reading
It has been over 30 years since Florida lawmakers enacted section 624.155, which was designed to provide a civil remedy when an insurer fails to settle their policyholder’s claim in good faith or commits any one of the unfair claims handling practices identified in section 626.9541(1)(i). Yet, to this day, questions still arise on one … Continue Reading
I’ve previously discussed Georgia’s bad faith demand requirements in Georgia Unfair Claims Handling. A recent Georgia appellate court opinion1 highlights how strictly OCGA § 33-4-6 is construed by the courts.… Continue Reading
With less than sixty days until the one-year anniversary of the most expensive hailstorm in Colorado history which hammered west metro Denver on May 8, 2017, many individuals, business owners, and community associations members continue the difficult task of negotiating with insurance companies in an effort to return property to pre-storm conditions.… Continue Reading
On April 7, 2017, the Texas Supreme Court in USAA Tex. Lloyds Co. v. Menchaca,1 answered several issues that had continually swirled around litigation arising out of Hurricane Ike policy disputes. Unresolved issues included among others: Whether an insured is required to obtain a breach of contract finding as a prerequisite to a recovery for … Continue Reading
Join Robert Trautmann and myself, on February 16, 2018, at 2:00 pm for a free one-hour webinar to discuss the Supreme Court of Pennsylvania’s recent decision in Rancosky v. Washington National Insurance Company,1 which upheld the current bad faith standards and specifically noted that an insured need not prove malicious intent to prevail on a … Continue Reading
Unlike many other jurisdictions, under Kansas law, an aggrieved insured cannot file a lawsuit against its insurer for “bad faith” as it is not a recognized tort in first-party claims.1 Note that Kansas still recognizes “bad faith” in the third-party context.2… Continue Reading
The 90-day period to resolve claims made for damages caused by Hurricane Maria may expire soon. To protect insureds from the bad faith and delay of the insurer, Puerto Rico’s Insurance Code provides under Art. 27.162, that insurance companies should be diligent in the processing of claims within the 90-day period for claims to be … Continue Reading
You filed a claim with your insurance company after suffering a loss and it is refusing to pay what is owed under your insurance policy – what now? One of your options is to file a Civil Remedy Notice of Insurer Violation, or CRN, with the Department of Financial Services. The CRN serves as notice … Continue Reading
Colorado’s statutory bad faith cause of action can be brought in addition to a claim against the insurer to recover an owed contractual benefit. More importantly, as Jonathan Bukowski discussed in a previous blog post, a cause of action under Colorado’s bad faith statute is not limited to a wronged policyholder, but can be made … Continue Reading
In the aftermath of Hurricanes Irma and Maria, the two-catastrophic category five hurricanes that struck the U.S.V.I. in the space of twelve days, many residents are still in survival mode as they deal with the lingering psychological and physical damage. As the resilient Virgin Islanders continue to rebuild, the next ordeal for those affected will … Continue Reading
In a past blog, I explored how the interpretation of California Civil Instruction (CACI) 2334 is impacting the law. This week, we look at the CACI instruction to analyze how an insurer’s “unreasonable” behavior is deciphered to potentially give rise to a bad faith verdict in California.… Continue Reading
With its 2008 enactment of Colorado Revised Statute § 10-3-1115 and § 10-3-1116, Colorado has created one of the country’s strongest statutory bad faith causes of action. What makes Colorado’s bad faith statute even more exceptional is that it allows a repair vendor, such as a roofer or restoration contractor, to assert a claim for … Continue Reading
In Pennsylvania, 42 Pa.C.S. § 8371 permits an insured to recover punitive damages, court costs, attorney’s fees and interest, on claims where an insurer has acted in bad faith. On September 28, 2017, the Supreme Court of Pennsylvania issued a ruling1 upholding the current bad faith standards and specifically noting that an insured does not … Continue Reading
On July 5, 2017, the Second Department gave a very meaningful win for insureds. In McBride v. New York Property Insurance Underwriting Association,1 Nor’easter Nemo struck the insured’s home causing a failure of the electrical system. The failure of the electrical system caused water pipes in the home to burst, causing water damage. New York … Continue Reading
Insurance companies hate producing its claims guidelines, loss ratios, and other relevant documents in bad faith litigation. Recently, a Nebraska federal trial court denied Owners Insurance Company’s request to bifurcate my client’s bad faith claim from its breach of contract claim. This ruling prevents unnecessary costs and delay and will allow the insured its day … Continue Reading
In August 2008, Colorado created a statutory bad faith claim of action for first-party policyholders not only separate and distinct from a claim for common law bad faith breach of an insurance contract, but establishes a much more reasonable threshold to prevail against an insurer under Colorado Revised Statute § 10-3-1115 and Colorado Revised Statute … Continue Reading
If your home or business is affected by a disaster and you have purchased property damage insurance, you may immediately feel a sign of relief. That relief could be fleeting, upon a discovery that the promptly submitted insurance claim has been denied. Immediately you realize there are statutes and regulations that protect consumers from wrongful … Continue Reading
Insurance Codes are regulated by each state, but ask any insurance company representative in any state and they will tell you it is an insurance company’s duty to place the insured’s interest ahead of the insurance company’s interests; and the proper way to handle a claim is to find coverage wherever possible.… Continue Reading
