Back in the halcyon days of insurance coverage litigation (before many defense-oriented judges began to view themselves as Guardians at the Gate of the Insurance Industry), New Jersey courts would occasionally hand down landmark decisions to protect the policy-buying public from sharp practices by carriers. One of those decisions was Griggs v. Bertram, 88
bad faith
When Insurance Companies Won’t Settle
By Gene Killian on
I’ve been representing policyholders in insurance coverage litigation for 35 years, and I’m convinced that I’ll never understand the logic of insurance company claim departments. They settle cases that I think they might want to fight, and they fight cases tooth-and-nail that I think they really should settle. (Maybe it’s me.)
The carrier’s claim file…
The discoverability of insurance company claims files
By Gene Killian on
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…
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.…
“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…
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. …
Bad Faith Insurance Claims Handling
By Gene Killian on
Here’s a question that perhaps should be posed to a magician: How can an insurance company turn an $85,000 claim (on a policy with a $100,750 applicable limit) into an $850,000 bad faith verdict? If you’re Merrimack Mutual, apparently it’s quite easy.
I wrote about this case some time ago when the jury verdict first…