The insured moved for an order compelling the production of documents from the insurer after 180 pages were produced, nearly all of which were blank after redactions. See Panattoni Construction, Inc. v. Travelers Prop. Cas. Co. of Am., Case No. C11-1195RSM, Order on Motion to Compel (W.D. Wash., Dec. 14, 2012) (see order here
Bad Faith
Communications Between Insurer’s Attorney and Injured Party’s Employer Not Privileged In Workers Compensation Context
By Tred R. Eyerly on
The Texas Supreme Court considered whether communications between the insurer's lawyer and the employer of the injured employee were privileged. See In Re XL Spec. Ins. Co., 2012 Tex. LEXIS 568 (Tex. June 20, 2011).
XL was Cintas Corporation's workers' compensation carrier. XL's policy required Cintas to cooperate in the investigation, settlement and…
Continuous Trigger of Coverage Adopted for Loss Under First Party Policy
By Tred R. Eyerly on
The Seventh Circuit predicted that the Wisconsin Supreme Court would adopt the continuous injury trigger for first party property loss that extends over several policy periods. Miller v. Safeco Ins. Co. of Am., 2012 U.S. App. LEXIS 12940 (7th Cir. June 25, 2012).
A home inspection report performed before the Millers purchased…
Hawaii Supreme Court Accepts Certiorari in Bad Faith Case
By Tred R. Eyerly on
My Damon Key blogging colleague, Rebecca Copeland at www.Recordonappeal.com., reports here that the Hawaii Supreme Court accepted certiorari in Willis v.Swain, First Insurance Company of Hawaii, Ltd., No. SCWC-29539. Our post on the Hawaii Intermediate Court decision is here. The case involves whether the insurance company owes a duty of good faith in…
Carrier’s Failure to Initiate Settlement Constitutes Bad Faith
By Tred R. Eyerly on
The Ninth Circuit determined that under California law, the insurer's failure to attempt to reach a settlement after it was reasonably clear that the insured's liability would exceed policy limits breached the covenant of good faith and fair dealing. Du v. Allstate Ins. Co., 2012 U.S. App. LEXIS 11755 (June 11, 2012 9th Cir.)…
Third-Party Beneficiary of Policy Can Maintain Bad Faith Action against Insurer
By Tred R. Eyerly on
The Wisconsin Court of Appeals acknowledged that the third-party beneficiary of a policy has a right to sue the insurer for bad faith. See Meleski v. Schbohm LLC, 2012 Wis. App. LEXIS 343 (Wis. Ct. App. May 1, 2012)
Plaintiff fell and injured herself on the insured's property. The insured's policy promised to "pay medical…
Federal District Court Continues to Find Construction Defects do Not Arise From An Occurrence
By Tred R. Eyerly on
Coverage for construction defects continues to be hotly contested in Hawaii state and federal courts. In a recent decision, Judge Mollway felt bound to follow the Ninth Circuit's decision in Burlington Ins. Co. v. Oceanic Design & Constr., Inc., 383 F.3d 940, 944 (9th Cir. 2004), where the court found construction defect claims…
Claims for Breach of Contract, Breach of Implied Covenant of Good Faith And Fair Dealing Can Be Based on Same Conduct
By Tred R. Eyerly on
The insured's claim for breach of the implied covenant of good faith and fair dealing was dismissed by the trial court because it was based on the same conduct as the breach of contract claim. See Columbia Cas. Co. v. 3M Co., 2012 Minn. App. LEXIS 23 (Minn. Ct. App. March 26, 2012).…
Consequential Damages Available If Insurer Breaches Duty to Defend
By Tred R. Eyerly on
The California Court of Appeals held that a carrier who breaches the duty to defend may be liable for consequential damages above policy limits. Carlson v. Century Surety Co., 2012 U.S. Dist. LEXIS 23119 (N.D. Cal. Feb. 23, 2012).
The underlying plaintiffs listed their home for sale with Prudential California Realty. Plaintiffs…
Insurer’s Motion for Summary Judgment on Bad Faith Issue Fails
By Tred R. Eyerly on
In a brief decision, the federal district court denied the insurer's motion for summary judgment on the insured's bad faith claims. Gulf Prod. Co. Inc. v. Hoover Oilfield Supply, Inc., 2012 U.S. Dist. LEXIS 3390 (E.D. La. Jan. 11, 2012).
The insured was sued for a defective flowline that allegedly splayed when pressure tested below…