A commentary on insurance coverage issues in Hawaii and beyond
Although the insurer's conduct did not amount to bad faith in Young v. Allstate Ins. Co., 119 Haw. 403 (Haw. 2008), the court held plaintiff's allegations of intentional infliction of emotional distress (IIED) were sufficient to survive a motion to dismiss.
Plaintiff alleged she was stopped in traffic when a car operated by an…
Interpreting Louisiana law, the Fifth Circuit determined that damages for mental anguish were properly awarded based on the insurer's bad faith. See Dickerson v. Lexington Ins. Co., 2008 WL 5295389 (5th Cir. Dec. 22, 2008).
The insured's home was extensively damaged by Hurricane Katrina. He held a homeowner's policy issued by Lexington. The insured…
In a decision policy holders will appreciate, the Washington Supreme Court recently held the insured could pursue bad faith claims for delay in processing the claim even when there is no coverage under the policy. See St. Paul Fire and Marine Ins. Co. v. Onvia, Inc., 2008 Wash. LEXIS 1055 (Wash. Nov. 26, 2008).
The…
Does the insurer act in bad faith when there is no excess judgment against the insured? Further, is there bad faith when the insurer’s actions never resulted in the insured’s increased exposure to liability for more than the policy limits? These two issues confronted the Eleventh Circuit in Perera v. United States Fidelity …
After enduring a tortured, ultimately failed attempt to negotiate a settlement under a renter’s protection policy, the insured sued. The trial court granted United Services Automobile Association’s motion for summary judgment, but the Hawaii Intermediate Court of Appeals vacated the decision and remanded for a determination of whether USAA’s interpretation of its policy…
In dual decisions, two motions for partial summary judgment were decided by the federal district court in Louisiana involving State Farm and its insureds. See Perrien v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS 53820 (E.D. La. July 14, 2008); Perrien v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS…
The Hawaii Supreme Court determined there was a genuine issue of fact on whether the insurer acted in bad faith in failing to consent to the insured's settlement with a third party tortfeasor. See Guajardo v. AIG Hawaii Ins. Co., No. 27893 (Haw. Sup. Ct. July 8, 2008).
The…
Stripping the job of an insurance company to its basic components reveals a gritty truth: insurance companies make money by collecting more than they pay out. A successful operation depends on exercising good judgment on what risks to insure (or charging high enough premiums). Unfortunately, an insurer can also vigorously oppose attempts to obtain coverage…
Practitioners have noticed, and have been puzzled by, a schism in the Supreme Court of Hawai`i’s rulings on attorneys’ fees in bad faith actions. At least one case held that a bad faith action was in the nature of assumpsit and, thus, awarded fees to the insurer from the insured. Six months later, another case…
The California Supreme Court decided a bad faith case last week. See Wilson v. 21st Century Ins. Co., No. S 141790 (Cal. Sup. Ct. Nov. 29, 2007). In Wilson, eight months after the plaintiff policy holder was injured, the insurer rejected her demand for payment of the $100,000 policy limit on her
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