For insurers, liability for bad faith failure to pay a claim hangs like a sword of Damocles. If a jury finds bad faith, the potential damages have no fixed upper limit. That’s one reason insurers have been happier to settle such claims rather than risk a high verdict or set a bad legal precedent for themselves, notes Robert I. Reardon Jr., a prominent New London, Conn., lawyer who has lectured on bad faith for the past 25 years.
The prospect of producing plaintiff-friendly case law may not be a big worry in the case of Nancy Hernandez v. Allstate Insurance Co., however, because the insurance company makes a vivid case it was “set up” for the bad faith claim by the plaintiffs lawyer’s tactics and timing.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]