Bad Faith

Bad Faith litigation remains a constant concern for the insurance industry. Extra-contractual exposure has been limited by recent court decisions and legislative tort reform enactments. However, the prevalence of extra-contractual claims in both first-party and third-party cases remains. Apart from the extra-contractual exposure to compensatory and punitive damages, these cases can be among the most costly to defend. Claimants seeking to establish a “business practice” as a prerequisite to seeking punitive damages will pursue discovery on a widespread scale, looking at the patterns and practices of a company in handling claims for other insured's. The cost of discovery in those cases can even exceed the exposure for the claim itself. Defending against such claims requires a specialized level of expertise and a commitment to aggressively defend against claims of bad faith and Unfair Claims Practices Act violations.

Our firm handles both first-party and third-party bad faith claims for insurers. We provide an early assessment of the case and the potential exposure to an adverse verdict so that an informed decision can be made on the disposition of the case. Where appropriate, our firm will handle settlement negotiations or mediation to bring the case to an early resolution. Where necessary, our firm will defend the case through trial. Our firm can also provide an independent review and assessment of bad faith claims where the matter is already in litigation with other counsel. We have provided expert testimony on claims handling issues and bad faith cases, as well.