In Trishan Air Co. v. Federal Ins. Co., 09-55317 (Feb. 16, 2011), the Ninth Circuit affirmed a summary judgment in favor of the insurer, finding (1) the policyholder did not strictly comply with a policy warranty as required by California law, and (2) the insurer was not in bad faith due to a genuine dispute between the parties regarding policy compliance.

Attachments:

Trishan Air

[ ]

110 Kb

In Blue Shield of Calif. Life & Health Ins. Co. v. Superior Court (Kawakita), 11 C.D.O.S. 1855 (Cal. Ct. App. Feb. 9, 2011), the California Court of Appeal for the Second District found a policyholder’s tortious bad faith claim against her health insurer was not subject to a two-year statute of limitations because language in the policy granted three years to sue for any matter arising out of the policy.  

Attachments:

Blue Shield

[ ]

161 Kb

In R.G. Wegman Construction Co. v. Admiral Ins. Co., No. 09-2-22 (7th Cir. January 14, 2011),  Judge Posner of the Seventh Circuit Court of Appeals held that, under Illinois law, an insurer has a duty to notify the policyholder when it obtains information indicating a claim could exceed the policy limits. When an insurer fails to do so and a verdict or settlement exceeds the policy limits, the insurer could be in bad faith.

Attachments:

Wegman v. Admiral Case

[ ]

124 Kb

In Griffin Dewatering Corporation v. Northern Insurance Company of New York, 09 C.D.O.S. 9790 (Cal. Ct. App. July 31, 2009), a California appellate court reversed a judgment in favor of a policyholder and held than insurer's reasonable, albeit incorrect, denial of coverage could not be rendered retroactively unreasonable - and thus a breach of contract - as the result of a California Supreme Court decision issued after the insurer's denial.

Attachments:

Griffin.pdf

[ ]

167 Kb