Arizona District Court Holds Insurer That Never Conceded Coverage, but Offered Policy Limits, is Not Liable as a Matter of Law for Excess Judgment
GEICO Indem. Co. v. Smith, 2016 WL 5791532 (D. Ariz. Oct. 4, 2016)
The Arizona District Court (Arizona and Pacific Reporter citations not yet available), held that an Insurer who offers its policy limits as a business consideration, but never concedes coverage, is not liable as a matter of law for an excess judgment against its Insured.
In Smith, an Insurer twice denied coverage for a claim, … Read More
Arizona Court of Appeals Confirms No "Good Faith" Requirement for Offers of Judgment
Stafford v. Burns, ---P.3d---,2017 WL 164310 (Ariz.App. January 17, 2017)
This is a medical malpractice and wrongful death case arising from emergency medical care rendered after a methadone overdose, the Arizona Court of Appeals “decline [d] to impose a requirement that Offers of Judgment be deemed reasonable before sanctions are imposed under Rule 68(g).”
In Arizona, a Rule 68 Offer of … Read More
What Happens If a Litigant Beats Multiple Offers of Judgment in Arizona?
In Orosco v. Maricopa County Special Health Care District, (2017 WL 469690) (Ariz. App. February 2, 2017), a medical malpractice case in which the jury’s $4.25 million verdict exceeded two offers of judgment made by plaintiffs, the Arizona Court of Appeals held “a subsequent offer of judgment does not extinguish the effect of an offeree’s failure to accept a prior offer when the judgment is … Read More
Tips to Avoid the Implied Waiver of the Attorney-Client Privilege in Arizona Insurance Bad Faith Cases
Although Arizona law regarding the implied waiver of the attorney-client privilege (the “Privilege”) is far from certain, an Insurer may avoid a waiver by following these tips:
An Insurer should consider whether to defend a bad faith claim solely on objective reasonableness.
An Insurer should avoid, if possible, asserting its actions were subjectively reasonable based on its adjuster& … Read More
Arizona Court of Appeals Notes "Good Reasons to Suspect Arson" and Disregards Insured's Expert Affidavit in Bad Faith Case
Epperson v. AAA Fire & CAs. Ins Co., WL 406144 (Ariz.App January 31, 2017)
Memorandum Decision, an insurance bad faith case arising from a fire claim, the Arizona Court of Appeals affirmed the trial court’s grant of summary judgment to an Insurer, despite the Insurer paying the claim over 15 months after the fire occurred.
The Insured’s argued the trial court erroneously ruled there was no bad … Read More
Illusion of Insurance Coverage
Many contracts or leases require one party to get insurance protection for the other party or landlord. Typically, they simply pass along the request for the insurance coverage to their insurance agent or broker and assume that their insurance will be updated to reflect the addition. To “prove” compliance with the contract requiring additional insurance coverage, the parties will often rely upon a & … Read More
Arizona Confirms Two "Claims" Against Two Drivers Arising From One Accident Does Not Allow Insured to Stack UIM Coverage
Yeager v. State Farm Mut. Auto Ins. Co., 2017 WL 491121 (Ariz. App. February 7, 2017)
Memorandum Decision, a declaratory judgment action, the Arizona Court of Appeals rejected an Insured’s argument that she could stack UIM coverage’s in separate policies issued by the same Insurer. The Insured was involved in a single accident, but argued she made “two” claims—one UIM claim … Read More
Ninth Circuit Affirms Abuse Exclusion Precludes Coverage for Failure to Prevent or Stop Abuse in Arizona
American Family Mut. Ins. Co. v. Verdugo, 2017 WL 2211275 (9th Cir. 2017)
Memorandum Decision, a coverage case arising from a homeowners policy, the Ninth Circuit Court of Appeals affirmed an Arizona District Court’s holding that an Abuse Exclusion precluded coverage for derivative negligence claims against Insured’s who allegedly failed to prevent or report abuse.
Insurance Case Overview … Read More
Ninth Circuit Revives Arizona Insured's Attempt to Collect Stipulated Judgment From Insurer
Labertew v. Langemeier, 846 F.3d 1028 (9th Cir. 2017)
The Ninth Circuit overruled the Arizona District Court’s dismissal of a garnishment filed by a Plaintiff/Assignee against an Insurer to collect a $1.5 million stipulated judgment entered against an Insurer pursuant to a “Damron Agreement.”
Under a Damron Agreement, if an insurer refuses to defend an insured, then an insured may … Read More
Arizona District Court Strikes Most of Plaintiff's Expert Opinion in Insurance Bad Faith Case
City of Phoenix v. First State Ins Co., 2016 WL 4592906 (D. Ariz. Sept. 2, 2016)
(Order), a coverage and bad faith case arising from an Insurer denying an Insured, the City of Phoenix, defense and indemnity from a personal injury claim resulting from asbestos exposure, the Arizona District Court held that the opinion of the Insured’s bad faith expert “will be excluded to the extent that it … Read More