Strategies, Challenges, and Answers

Archives for March 2012

A Finding Of Bad Faith Does Not Automatically Entitle The Policyholder To An Award Of Attorney’s Fees

Does a finding of bad faith trigger entitlement to an award of attorney’s fees? In Nevada, the answer is no. This issue was addressed in the 2007 case of Merrick v. Paul Revere Life Ins. Co., 500 F.3d 1007 (9th Cir., 2007).Paul Revere Life and co-defendant Unum Provident denied Merrick’s disability insurance claim.  Merrick filed suit alleging breach of contract and of the duty of good faith and fair dealing.  Applying Nevada law under the doctrine of Erie Railroad v. Tompkins, 304 U.S. 64 … [Read more...]

Parents Are statutorily Liable For Damages Willfully Caused By Their Minor Children Up To $10,000, But Are Those Damages Covered?

As a practice, when a minor causes damage or injury, the plaintiff will name as defendants both the minor and the parents.  There are a variety of theories under which the parents can be held liable for the minor’s acts.  See HERE for example.  If the minor’s acts appear to have been intentional, one of theory of recovery is a Nevada statute.  N.R.S. 41.470 imposes limited vicarious liability on parents whose minor children willfully cause damage to others.  The statute reads: NRS … [Read more...]

Did You Ever Forget To Tell Your Current Insurance Company About Buying That Additional Car?

Joey Webb of State Farm writes to the Nevada Insurance Law blogs asking: "When a person purchases a new vehicle, how long are they covered for on their current policy before physically adding the new vehicle to their policy?" Thanks for the great question Joey.  Clearly, Mills & Associates is not in the business of offering advice to non-clients based on specific facts.  So we have to say that the most accurate answer is “That depends on the facts and the policy.”  When dealing with a … [Read more...]

Ambiguous Additional Named Insured Endorsement Causes Employers Liability Carrier To Pay Bodily Injury Damages To Employee.

Clark Lift West, Inc. employed Mr. Pierce. One of Clark Lift’s clients was Southern Wine &Spirits. While servicing a Southern Wine and Spirits conveyor belt, Pierce slipped on a piece ofcardboard that was lying on the floor at the Southern Wine plant. Pierce fell onto the conveyorbelt and was hurt. Pierce sued Southern Wine for negligently allowing the cardboard to be on the floor. SouthernWine had liability coverage issued by Federal Insurance Company. Clark Lift hadliability insurance as … [Read more...]

Ambiguous Additional Named Insured Endorsement Causes Employers Liability Carrier To Pay Bodily Injury Damages To Employee

Clark Lift West, Inc. employed Mr. Pierce.  One of Clark Lift’s clients was Southern Wine & Spirits.  While servicing a Southern Wine and Spirits conveyor belt, Pierce slipped on a piece of cardboard that was lying on the floor at the Southern Wine plant.  Pierce fell onto the conveyor belt and was hurt.Pierce sued Southern Wine for negligently allowing the cardboard to be on the floor.  Southern Wine’s liability had liability coverage issued by Federal Insurance Company.  Clark Lift had … [Read more...]