BAD FAITH CLAIMS
Bad faith claims encompass a wide range of alleged wrongdoings, including improper claims investigation, administration, settlement or denial. Litchfield Cavo attorneys proactively minimize the risk of bad faith claims by implementing effective risk management strategies designed to prevent such claims. When bad faith claims are asserted, our attorneys mount an aggressive and thorough defense.
Allegations of bad faith can severely damage an insurer’s reputation and, ultimately, their bottom line. Litchfield Cavo attorneys have significant experience in counseling clients on bad faith matters. Our attorneys address the complexities nuances of bad faith litigation and protect our clients’ interests throughout the claims-handling process, to avert bad faith claims at multiple stages, including:
- Attorney fees | Most bad faith statutes or laws permit the insured to recover attorney fees and costs.
- Exposure of confidential files | Discovery in bad faith cases may force an insurer to disclose confidential files and protected attorney-client communications, not only for the case at hand but, in some instances, for similar cases. These documents may quickly become public and are usually reappear in future litigation.
- Extra-contractual damages | Judgments that exceed policy limits can expose clients to financial liability.
- Punitive damages | In some states, insurers may face punitive or treble damages on a bad faith award.
With a nationwide presence, Litchfield Cavo attorneys bring a thorough understanding of varying state insurance laws and bad faith theories, ensuring our clients receive comprehensive and effective legal representation
Our Bad Faith Record
- Defense of insurance company against bad faith claims for not “splitting” a file, notwithstanding the insurer’s unreserved acceptance of the tender of defense.
- Successfully defended bad faith claim arising from the settlement of multiple bodily injury claims where the policy limits were insufficient to cover all claims.
- Successfully defended bad faith claims related to set-off provisions of an underinsured motorists benefits policy.
- Obtained favorable jury verdict in a claim involving the alleged bad faith denial of coverage and alleged non-compliance with policy reporting requirements under a stop-loss warranty policy.
- Obtained favorable jury verdict in a statutory bad faith action arising from the carrier’s alleged failure to settle a case after liability was reasonably clear.
- Successfully defended allegations of bad faith claims handling as part of a multiple site environmental coverage matter involving thousands of underlying claims.
- Obtained summary judgment in numerous declaratory judgment actions on substantive coverage issues, and resulting in a summary judgment on the companion bad faith claim.
- Successfully defended a common law and statutory bad faith claim involving the alleged improper investigation and denial of a multimillion-dollar claim.
- Successfully defended healthcare insurer from bad faith charges after having denied coverage for a procedure it deemed experimental.
- Obtained jury verdict in favor of our client in a multiple defendant case involving alleged bad faith settlement practices.
