In recent years, there have been changes across jurisdictions, expanding the scope of potential liability for bad-faith damages. In addition, there are challenges in navigating the continued erosion of the attorney-client privilege in bad-faith litigation.
We also cannot forget how the COVID-19 pandemic has impacted litigation, creating uncertainty as to when civil trials will commence with regularity.
Savvy plaintiffs’ attorneys are looking to build up the claim value by posturing the claim early on for potential extra-contractual exposures.
This all starts with the adjuster’s handling of pre-suit demands. Let’s look at some of the recent trends and provide practical solutions for how to avoid common pitfalls from acknowledgement of the claim through resolution.
One area in which bad-faith claims arise is when an insured is exposed to an excess judgment. In that instance, plaintiffs’ attorneys often argue that the carrier should have settled the claim had it acted honestly and fairly toward the insured.