Strategies, Challenges, and Answers

UIM Bad Faith Damages Do Not Include Those Bodily Injury Damages That Are In Excess Of Both The Liability And The UIM Policy Limits

Mr. Bartlett had a dispute with his insurance company. He disagreed with the insurance company’s valuation of his underinsured motorist case. Bartlett sued the tortfeasor and got a judgment against him that was in excess of the torfeasor’s liability limits and in excess of Bartlett’s own underinsured (UIM) motorist coverageWith the judgment in hand, Bartlett filed a suit against his UIM carrier for bad faith.  Bartlett v. State Farm Mut. Auto. Ins., Case No. IP01-0510-C-HG, (D.C. Ind., Nov. … [Read more...]

The Carmack Amendment Preempts State Insurance Law Claims For Bad Faith And Unfair Claims Settlement Practices.

Mills & Associates’ practice focuses in a limited number of areas.  Two practice areas of interests are insurance bad faith law and trucking law.  So it is always interesting to find a case that we can blog about that that touches on both areas.  This is one of those cases.The Nichols family hired Mayflower Transit, LLC to transport their household good from Sacramento, CA to Henderson, NV.  The goods made it over the Nevada state line, but not all the way to the Nichols’ home.  A … [Read more...]

If An Insured’s Policy Covers Activities In Nevada, The Insured Can Sue The Company In Nevada For Breach Of That Policy And For Bad Faith

The Mendes family lived in Massachusetts.  They owned a house in Massachusetts.  They registered to vote there.  Their auto registration and drivers licenses were all from Massachusetts.  In fact, they had auto insurance that they bought in Massachusetts that was underwritten by the Arabella Mutual Insurance Company.  The Arabella policy required that to claim the benefits of all of the policy’s coverage provisions, the insured car had to be principally garaged in Massachusetts.The Mendeses … [Read more...]

A Breach of Nevada’s Unfair Claims Settlement Practices Act Does Not Amount To Bad Faith Per Se

Good Faith Gone Bad In United States Fidelity & Guaranty Co. v. Peterson, 91 Nev. 617, 540 P.2d 1070 (1975) the Nevada Supreme Court allowed a common law action by an insured against his insurer for a breach of the implied covenant of good faith and fair dealing, commonly called “bad faith”. In order to sustain a bad faith claim, the plaintiff must prove that: 1)   The insurer denied or refused to pay an insured’s claim; 2)   The insurer had no reasonable basis to deny or refuse to pay … [Read more...]

U.S. District Court For Nevada Refuses To Dismiss Extra-Contractual Claims Even Though It Finds There Is No Coverage

Mr. Turk was a builder.  His companies and others built the Rancho del Norte Villas.  The construction was supposed to comply with the Fair Housing Act.  It didn’t.  The Disabled Rights Action Coalition sued Turk and a number of others for the alleged violations.Turk turned to several insurance policies that he thought should cover him.  After various attempts to get a response, he filed for declaratory relief.  Ultimately, the court determined that there was no coverage under any of the … [Read more...]