Strategies, Challenges, and Answers

State Farm Argues It Has No Duty To Provide Cumis Counsel In Nevada

In prior blog posts, the Nevada Law Blogs promised its readers regular updates regarding the issue of “Cumis” Counsel that is now before the Nevada Supreme Court. See HERE and HERE. Appellant State Farm recently filed its opening brief in State Farm Mut. Auto. Ins. Co. v. Hansen, Nevada Supreme Court Case No. 64484.  You can read the entire brief HERE. In 2003, the local press widely published the facts of this case. Plaintiffs Hansen, LeFevre and Grill were at a party. They decided it was … [Read more...]

Nevada Allows Policyholders To Sue Certain Managing General Agents and Third-Party Administrators For Bad Faith

An agent who acts for a disclosed principal is not liable for commitments made by the agent in the principal’s behalf.  See ALI’s Restatement (Second) of Agency § 320 (1958).  In the field of insurance, managing general agents, third-party administrators and independent adjusters have regularly shielded themselves from claims of bad faith brought by policyholders’ against the insurance company for which that agent works.  But that rule of hornbook law is beginning to erode following insurance … [Read more...]

Answers To Questions Can Often Be Found On The Nevada Law Blogs

People from around the country send questions to the Nevada Law Blogs for help on Nevada law questions that they encounter.  While the Nevada Law Blogs do not create attorney client relations with anyone and best practice is to hire and pay a lawyer to answer legal questions, sometimes the Blogs can give people a starting point for their research.For example, today we got a question from an adjuster in Illinois.  She has a case where a single 25-year-old unmarried adult child had been … [Read more...]

One Minute Closer To High Noon

A Nevada Law Blog post recently compared an iconic wild-west film showdown to an upcoming showdown at the Nevada Supreme Court.   The showdown will decide whether the Court will impose Cumis-type obligations on Nevada insurance companies where an assigned defense panel counsel faces an irreconcilable conflict between the interests of the insurance company and those of the policyholder.  An order just issued by the U.S. District Court, District of Nevada shows that this high noon showdown about … [Read more...]

Is A Nevada Insurance Company Obligated To Provide Its Policyholder With A Conflict-Free Defense? Nevada and Cumis.

Like a classic American western, the stage is set for a showdown.  If this were a movie,  the overhead sun would reflect off the lawman’s brightly polished star.  The gunslinger would strap on his belt and tie the holster to his thigh.  You would see mothers rushing their children inside, as the clock ticks closer to noon.  People in the saloon would be placing their bets on who would win this upcoming confrontation.  However this battle isn’t one of gunpowder and bullets.  Instead it is one of … [Read more...]