Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: judgment

No bad faith for delay in appraisal where there were coverage issues — 10th Cir Oklahoma

Posted in Insurance Bad Faith
This is the second case involving Hayes Family Trust v. State Farm Fire & Casualty.  The first case, involving the appraisal process, is discussed here.  In this case, the policyholder claimed that State Farm acted in bad faith when it delayed the appraisal process because of coverage issues and when it failed to adequately investigate… Continue Reading

Insurer equitably estopped from denying coverage based on change of position on interrelated acts — 10th Circuit — NY law

Posted in Contractual Liability, Duty to Defend
In Brecek & Young Advisors v. Lloyds London, BYA told Lloyds about some claims (Wahl Arbitration) that fell within the 2006-2007 policy issued by Lloyds to BYA.  Lloyds first claimed that the Wahl Arbitration was related to another claim under a previous policy issued by Fireman’s Fund. Under the policy,“Interrelated Wrongful Acts” are “considered a… Continue Reading

Appraisal process, prevailing party, attorneys fees — 10th Circuit, Oklahoma

Posted in Contractual Liability
In re: Hayes Family Trust v. State Farm Fire & Cas. Co., involved a property damage claim where the policyholder invoked the appraisal process after the parties could not agree on the amount of the loss. The policy establishes a procedure whereby each party selects an impartial appraiser; the appraisers then select an impartial umpire.… Continue Reading

Insurer’s Delayed Loss Adjustment & Misleading Insured about Settlement May Constitute Bad Faith – 8th Circuit, Iowa

Posted in Contractual Liability, Insurance Bad Faith, New Case
Bruhn Farms Joint Venture v. Fireman’s Fund Ins. Co. involved a dispute over the adjusted value of hail-damaged crops. The insured notified the insurer of the hail damage. Over a month later, the insurer adjusted the loss. Additional inclement weather had further damaged the crops and all salvageable crops had been harvested. Still, the insurer… Continue Reading

Attorneys fees statute strictly construed; 8th Circuit — Arkansas

Posted in Contractual Liability, New Case
In Cooper v. General American Life Ins. Co., Cooper got an annuity from General American.  But the money funding the annuity didn’t clear, so General American reversed the transaction.  General American would reinstate the annuity and pay Cooper interest if and when the payment cleared.  Before the matter was resolved (payment was made and finally… Continue Reading

$2M+ verdict upheld for failure to pay uninsured motorist benefits – 10th Circuit, Colorado

Posted in Insurance Bad Faith, New Case
In Etherton v. Owners Insurance Company, Etherton was hurt in a car wreck and had 3 back surgeries.  He settled with the other driver for $250,000 and wanted $750,000 from his uninsured / underinsured motorist carrier — the remainder of his $1M policy limit. The UM carrier (Owners) offered $150,000, because it did not believe… Continue Reading

Partially subrogated insurers are not “parties” to class action, thus, have no liability for fees (Oklahoma)

Posted in New Case
In Avens v. Cotton Electric Coop., Inc., 2016 OK CIV APP 39, the plaintiffs’ class were claimants who claimed damages as a result of a fire allegedly started by Cotton Electric.  Insurers had paid part of the losses and had brought their own subrogation claims before the class action suit was filed.  The subrogation claims… Continue Reading

Failure to reevaluate case after partial summary judgment is bad faith 8th Circuit, Nebraska

Posted in Insurance Bad Faith, New Case
In Bamford, Inc. v. Regent Insurance Company, one of Bamford’s employees caused an accident and Bamford told Regent to settle the resulting claims within its policy limits of $6M.  There was no settlement, and a judgment was entered against Bamford for $10.6M.    The damages included a claim on behalf of the other driver’s estate.  A… Continue Reading

Anti-stacking UM policy struck down — again! Missouri law

Posted in New Case
In Nationwide v. Dugger, Tanya Dugger’s daughter was killed when the vehicle she was riding in was struck by a train.  Tanya Dugger had an automobile policy with Nationwide that insured two vehicles. The Policy contained anti-stacking language purporting to limit Tanya to a single payment of $25,000 for her UM coverage. The trial court… Continue Reading

Primary insurer has no duty to initiate settlement discussions — 5th Circuit, Mississippi law

Posted in Contractual Liability, Insurance Bad Faith, New Case
Previously, we told you about SRM, Inc. v. Great American Ins. Co., No. 14–6160 where the Tenth Circuit said there was no duty of an excess carrier to initiate settlement discussions (See post here) Now the Fifth Circuit has ruled there is no duty on a primary insurer to initiate settlement discussions, even where liability… Continue Reading

D&O policy doesn’t cover bank officers for FDIC claims under insured vs insured exclusion — 10th Circuit, Kansas

Posted in Duty to Defend, New Case
In BancInsure, Inc. v. FDIC, BankInsure issued a Directors and Officers liability policy (D&O policy) to Columbian Bank, which was put into receivership by the FDIC.  Various officers confirmed with BancInsure that it would cover FDIC claims so long as it (the insurer) got proper notice.  But when the directors got sued, BancInsure said there… Continue Reading

Garnished insurer not bound by sham judgment

Posted in New Case
In this road rage case, Burton was alleged to have improperly operated his vehicle and then shot and killed Moore. The court records revealed that after a supposed settlement, there was a trial and plaintiff (Moore's spouse) was awarded $1.2 million in damages. State Farm, Burton's automobile liability insurer was garnished, and sought to have the judgment vacated. The trial court refused to vacate the judgment, and instead modified it to reflect that instead of a trial, the parties stipulated to the facts upon which judgment was entered.… Continue Reading