Stopping the Setup

Eighth Circuit to insurers: Settlement evaluation must constantly adapt to litigation developments

June 28, 2016

A recent decision of the US Court of Appeals for the Eighth Circuit taught an insurer a costly lesson about trying to avoid extra-contractual liability: Insurers must constantly reevaluate their settlement position throughout the claims process, especially when any of the following events occur: (1) a significant court ruling; (2) a request from the insured’s counsel; and (3) new advice provided by the insurer's retained counsel. In Bamford, Inc. v. Regent Ins. Co., No. 15-1968, 2016WL2772585 (8th Cir. May 13, 2016), an insurer had to pay approximately $2 million over its $6 million limit for its failure to settle a claim for severe injuries resulting from an automobile collision, after its insured’s defense was stricken and the insured was found liable as a matter of law.

Kansas: Safe harbor for insurer faced with settlement demand to only one insured

November 4, 2015

What should an insurance company do when liability of the insured is clear, the damages clearly exceed the limits, and the claimant sends a settlement demand that would exhaust policy limits while releasing only one out of two (or more) insureds?

Can an insurer be liable for bad faith failure to settle without a settlement demand?

October 1, 2015

The Tenth Circuit, applying Oklahoma law, recently became the latest court to rule on this frequently-disputed issue. The court ruled that, while a primary insurer has an affirmative duty to initiate settlement negotiations when an insured’s liability is clear and injuries of a claimant are so severe that a judgment in excess of policy limits is likely, this affirmative duty does not apply to excess insurers. SRM, Inc. v. Great Am. Ins. Co., No. 14-6160, 2015 WL 5011719, at *3 (10th Cir. Aug. 25, 2015).

Pennsylvania Supreme Court allows insured to settle without consent of insurer defending under reservation of rights

September 16, 2015

Bad faith claims can have major consequences for insurers. Stopping the Setup gets into the minds of plaintiffs' lawyers and addresses the ways they try to create bad-faith claims against insurance companies. This overview gives you gives you 10 tips for avoiding bad faith failure to settle claims in matters where exposure potentially may exceed policy limits.

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Stopping the Setup

Stopping the Setup

Eighth Circuit to insurers: Settlement evaluation must constantly adapt to litigation developments

Kansas: Safe harbor for insurer faced with settlement demand to only one insured

Can an insurer be liable for bad faith failure to settle without a settlement demand?

Pennsylvania Supreme Court allows insured to settle without consent of insurer defending under reservation of rights

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Helping our clients everywhere

Dentons news

Dentons launches combination with PJS Law in the Philippines

Dentons launches combination with Link Legal in India

Dentons launches combination with Zaanouni in Tunisia

Dentons solutions: global tools and trackers

Anti-bribery and anti-corruption laws

Global bid challenge tracker

Global collective redundancy guide

Stopping the Setup

Stopping the Setup

Eighth Circuit to insurers: Settlement evaluation must constantly adapt to litigation developments

Kansas: Safe harbor for insurer faced with settlement demand to only one insured

Can an insurer be liable for bad faith failure to settle without a settlement demand?

Pennsylvania Supreme Court allows insured to settle without consent of insurer defending under reservation of rights

Share

How can the world's largest global law firm help you today ?

Contact us or find an office in your location.

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