I once had a coverage case that involved a claim for environmental contamination at a chicken farm. (Yes. A chicken farm. In New Jersey.) When we were able to pry the claim file loose in discovery, we noticed that the carrier had spent a grand total of $24 to investigate the complex pollution claim, which
Bad Faith
Can an insurance company be liable for bad faith in settling a liability suit?
By Gene Killian on
I like to think I’m pretty fair and impartial in these blog posts. I said that to a friend of mine in the defense bar who apparently reads my ramblings, though, and she laughed at me. I suppose I have a classic case of confirmation bias, where I think that insurance companies often forget what…
Demands for insurance policy limits in a serious liability case
By Gene Killian on
Earlier this month, I was asked by Elizabeth Lorell, an excellent defense lawyer, to speak at a CLE conference sponsored by her law firm. (You can read Elizabeth’s bio here.) The audience consisted of other defense lawyers, and insurance company claims representatives. In other words, I was basically a snake at a mongoose convention.…
Direct Actions against Insurance Companies
Labor Day has just passed as I write this, and this summer (that went by too quickly) was a busy one for the New Jersey appellate courts, insurance-wise. The New Jersey Supremes, for example, dealt with a question often posed by our clients in construction defect cases: Namely, can a claimant proceed directly against a…
“Ordinance or Law” Coverage for Costs of Repair
I was saddened to learn that Judge Ruggero Aldisert, formerly of the Third Circuit, recently passed away. I never had the privilege of appearing before Judge Aldisert, and I never met the man, but I feel indebted to him for writing two excellent books that were published through NITA: “Logic for Lawyers” and “Winning on…
Superstorm Sandy and Bad Faith Claims Handling
By Gene Killian on
Representing people who have lost homes and businesses following Sandy has been gut-wrenching. And, I have to say, many of the carriers haven’t made it any easier. I could catalog some of the problems we’ve seen, but that would make this a very long post. Instead, I’d like to focus on one aspect: The use…
Additional Insured Coverage and the Employer’s Liability Exclusion
By Gene Killian on
My late Uncle Carmen was an accountant who worked for the IRS. One tax season, I was grousing about how complicated the 1040 form could be. Uncle Carmen didn’t suffer fools gladly, and, with the veins bulging from his neck, insisted that NOTHING ON EARTH COULD BE SIMPLER. My response was to engage in a…
Sandy and the New Jersey Department of Banking and Insurance
By Gene Killian on
As the weeks following Sandy have stretched into months, and the months are beginning to stretch into years, businesses and homeowners with unresolved claims have been asking me whether it’s worthwhile to complain about their carrier to the New Jersey Department of Banking and Insurance (“DOBI”). Truth be told, it’s a complete waste of time.
Toughening New Jersey’s bad faith law
By Gene Killian on
If an insurance company wrongfully denies a third-party liability claim, then, under the New Jersey Court Rules (R. 4:42-9(a)(6), to be exact), if the policyholder has to sue to enforce coverage for the claim, the policyholder is entitled to recover its attorneys’ fees. Due to a weird quirk in the Court Rules, however, a…
Bad Faith and the Duty to Defend
By Gene Killian on
I’m reading a wonderful book right now called “Young Men and Fire,” by Norman Maclean. The book is about a horrific forest fire that took place in Montana in 1949. Amazing how small sparks can result in a conflagration beyond all belief. Those of us involved in the litigation game are familiar with that problem. …