The recent opinion of Gallegos v. Malco Enterprises of Nevada, dba Budget Rent A Car, 127 Nev. Adv. Op. 51, 255 P.3d 1287 (2011) may be the most significant bad faith case issued by the Nevada Supreme Court in a decade. To understand the case, you’ve got to know the facts.The driver of a Budget rental car injured Gallegos. Gallegos sued the driver who subsequently defaulted. The District Court entered a default judgment in favor of Gallegos for $400,000.00.Gallegos unsuccessfully … [Read more...]
Archives for 2011
A Nevada Court Can Judicially Assign A Judgment Debtor’s Bad Faith Rights Against His Insurance Carrier To The Plaintiff Via Post Judgment Execution
September 28, 2011 by
Auto Insurance Carriers Cannot Compel Arbitration, But It Never Hurts To Ask
September 13, 2011 by
Most auto insurance policies include a provision that allows the insurance company and the insured to arbitrate first party disputes. However, attempts to compel arbitration under auto insurance contracts are forbidden in Nevada: NRS 690B.017 provides:NRS 690B.017 Provisions for arbitration not binding. No provision for arbitration contained in an automobile liability or motor vehicle liability insurance policy delivered, issued for delivery or renewed in this State is binding upon the … [Read more...]
Inadequate Limits? What Not To Do. . .
August 25, 2011 by
Insurance companies regularly ask Mills & Associates for advice on how to handle claims where policy limits are inadequate, either because the injuries are severe or because there’s just not enough money to satisfy the multiple claimants. The case of Benchmark v. Sparks, 127 Nev. Adv. Op. 33, 254 P.3d 617 (2011) all but does away with one option that has been popular with the insurance companies, that of interpleader.The court explained that the Benchmark policy included a provision … [Read more...]
By Paying The Undisputed Amount, Can An Insurance Carrier Conquer A Claim For Punitive Damages?
July 1, 2011 by
In a recent Order entered in the case of Nelson v. Safeco Ins. Co. of Ill., 2:10-CV-241 JCM (LRL) (Mar. 8, 2011) the U.S. District Court for the District of Nevada considered a motion for summary judgment filed by the insurer. That case involved an underinsured motorist claim (UIM). The liability carrier had paid its limit. Safeco, the UIM carrier, then conceded coverage, evaluated the claim and paid the undisputed amount. When plaintiff filed suit, he alleged three causes of action breach … [Read more...]
Must An Insurance Company Immediately Pay The “Undisputed Amount”?
June 7, 2011 by
Our insurance company clients have asked the following question: “Where a first-party claim is involved, does the carrier have to immediately pay the claimant the amount at which the carrier values the claim? Or can it in good faith refuse payment until the parties reach a resolution of the dispute as to value?” The answer to that question always starts with a review of the regulations. Nevada Administrative Code 686A.675 reads as follows: 7. Except for a claim involving health insurance, … [Read more...]
