Strategies, Challenges, and Answers

The Nevada Supreme Courth Finds An Earth Movement Exclusion To Be Ambiguous And Unenforceable

In the 2011 case of Powell v. Liberty Mutual Fire Ins. Co., 127 Nev. Adv. Op 14, 252 P.3d 668 (2011) the Nevada Supreme Court struck down the insurance company’s “earth movement” exclusion as ambiguous and unenforceable.In light of an earlier federal case, the outcome was something of a surprise.  In the earlier case of Schroeder v. State Farm Fire and Cas. Co., 770 F.Supp. 558 (1991) the court considered facts very similar to those raised in the Powell decision.  The opinion recites those … [Read more...]

Michael Mills Profiled In Attorney At Law Magazine

In addition to honoring Justice A. William Maupin (ret) with the cover feature story, Mr. Michael C. (Mike) Mills was the only other Nevada attorney profiled in the Premiere Issue of the Las Vegas edition of Attorney at Law Magazine.The article shares Mr. Mills philosophy, experience and outlines why teaching is such an important part of his practice. Click HERE to view the article in full screen. … [Read more...]

Many Nevada Judges Allow UM / UIM Breach Of Contract And Extra-Contractual Causes Of Action To Proceed Simultaneously In The Same Suit

Some states require policyholders to complete the litigation over the contract portion of a UM / UIM claim before a bad faith or unfair claims practices action can commence. Blanchard v. State Farm Mut. Auto. Ins. Co.,575 So.2d 1289, 1291 (Fla.1991) National Sav. Life Ins. Co. v. Dutton,419 So.2d 1357, 1362 (Ala.1982), Lexington Ins. Co. v. Royal Ins. Co. of Am.,886 F.Supp. 837, 841-42 (N.D.Fla.1995).  Some states obligate the policyholder to go through arbitration before the bad faith claim … [Read more...]

Nevada Requires An Owner’s Auto Policy To Provide Minium Limits Coverage To Any Permitted Driver, Even If The Policy Specifically Excludes That Person By Name

An insurance company that has been writing policies in Nevada for just a few years asks the Nevada Law Blog if it can deny third-party liability coverage to a permissive driver who was excluded by name from the policy.  Nevada answered that question over two decades ago in the case of Federated American Ins. v. Granillo, 108 Nev. 560, 835 P.2d 803 (1992).Mr. Granillo bought auto insurance from Federated American Insurance.  The company told Granillo that if he were the only driver of the … [Read more...]

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...]