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Bad Faith Blog

We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.

Bad Faith Blog
May 26, 2020

Washington Supreme Court Holds Insurer that Breached its Duty to Defend in Bad Faith is Estopped from Denying Coverage Absent an Applicable Affirmative Defense

The insureds sued their title insurer alleging breach of the duty to defend after Indian tribes asserted their treaty right to harvest shellfish from insureds' tidelands. The Washington Supreme Court held an insurer’s breach of its duty to defend was in bad faith because the insurer’s arguable interpretation of Washington law was not consistent with the insurer’s obligation to provide its insured with the benefit of any doubt regarding a duty to defend.

Bad Faith Blog
August 9, 2016

Reasonable Claims Handling Defeats Colorado Insured’s UIM Bad Faith Claim

Summary: Williams was injured in a car accident, settled with the at-fault driver’s insurance company for the policy limits of $25,000, and then made a claim against her own insurance policy under the underinsured motorist (UIM) provision. Her Owners Insurance Company (“Owners”) policy provided $100,000 of UIM coverage. Claiming medical expenses in excess of $50,000 and lost wages in excess of $60,000, she demanded the policy limits, but her demand was rejected. Williams then filed suit against Owners alleging breach of contract and both common law and statutory bad faith delay in processing her claim. The district court granted Owners’ motion for summary judgment after finding that Williams failed to produce evidence showing the unreasonableness of Owners’ conduct. On Williams’s appeal, the United States Court of Appeals for the 10th Circuit affirmed on all counts.