Strategies, Challenges, and Answers

A Reasonable Defense Trumps Bad Faith Even With Multiple Policy Limit Demands And An Excess Verdict

Jesse Kalberer and Eileen Mediola were in a car accident. Ms. Mediola’s attorney sent a policy limit demand to Jesse’s auto carrier, American Family. American Family rejected the demand claiming that the injuries were pre-existing and that the medical bills were overstated.American Family warned Jesse of a possible excess verdict. Plaintiff even emailed American Family and asked the company to settle so as to not expose Jesse to an excess verdict.At the same time, Jesse’s defense … [Read more...]

A Nevada Court Can Judicially Assign A Judgment Debtor’s Bad Faith Rights Against His Insurance Carrier To The Plaintiff Via Post Judgment Execution

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...]