Bad Faith Blog

One of Missouri’s statutes aimed at curbing abusive tactics used to “set up” extra-contractual claims in Missouri was construed as providing thirty days to intervene even when there was no pending lawsuit.

Summary: A landowner brought an action against the general contractor and subcontractors involving the construction of a home. General contractor’s insurer moved to intervene to challenge reasonableness of a $12M Judgment to which contractor confessed judgment. The lower court entered Judgment in favor of general contractor. The insurer appealed arguing it had a right to intervene to challenge the reasonableness of the confessed judgment. The Montana Supreme Court reversed and remanded holding the insurer was entitled to intervene.