If at first you don’t succeed, try, try again. An age-old adage that now provides critical guidance for insurers seeking to protect themselves in the face of bad faith failure to settle claims. In McGranahan v. Geico Indemnity Co., Michael McGranahan appealed a California district court’s order against him that granted Geico’s motion for summary judgment. In the district court, McGranahan asserted that Geico breached the implied covenant of good faith and fair dealing ... Keep Reading »
Georgia Appellate Court Finds Insurer’s Intended Acceptance of Presuit Settlement Offer Invalid, As Check Was Issued Earlier Than Time Specified by Claimant
In Pierce v. Banks, the Georgia Court of Appeals reversed a trial court order denying plaintiff Aaron Pierce’s partial motion for summary judgment and granting a cross-motion to enforce a settlement in favor of defendant Kyndyl Banks. The central question for both motions was whether a binding presuit settlement agreement existed between the parties under Georgia’s 2021 presuit demand statute (O.C.G.A. § 9-11-67.1). In February 2021, Pierce was involved in a motor ... Keep Reading »
Mass. Court Holds Unprovoked Attack Not “Physical Abuse” Within Meaning of Abuse and Molestation Exclusion
In Dorchester Mutual Insurance Co. v. Miville, the Supreme Court of Massachusetts discussed the basis for its reversal of the Superior Court’s grant of summary judgment in favor of Dorchester Mutual based on its interpretation of what constitutes “physical abuse” in the context of an abuse and molestation exclusion as it applies to the insured’s unprovoked attack on an individual. The facts regarding the unprovoked attack by the insured, William Brengle, on Leonard ... Keep Reading »
Massachusetts Federal Court Affirms Coverage Disclaimer Based on Excess Carrier’s Strict Enforcement of Notice Requirement
In President and Fellows of Harvard College v. Zurich American Insurance Company, the U. S. District Court for the District of Massachusetts discussed the basis for its strict enforcement of an excess insurance policy’s notice requirement. Harvard sought coverage from its excess insurer, Zurich, under a “claims-made-and-reported insurance policy” for an underlying lawsuit against Harvard regarding challenges to its admission policies. The underlying suit was filed in ... Keep Reading »