Claims and Bad Faith Law Blog

"The Lawyer as an Insurance Claims Expert" Witness.

I recently came across an article that was published online last month by the International Risk Management Institute ("IRMI").  I thought that you would like to know about it.  The Defense Research Institute published a longer version awhile ago.  Here is a link to the current IRMI article:  B. Zalma, "The Lawyer as an Insurance Claims Expert" (IRMI, May 2007), http://www.irmi.com/Expert/Articles/2007/Zalma05.aspx .

The author observes that lawyers frequently testify at trial as Experts on Insurance Bad Faith among other Insurance issues.  As he reads the case law, the author reflects upon writing both of these articles, that the Courts prefer allowing lawyers to testify as Experts on Insurance issues who have experience in advising Insurance companies about Insurance Coverage and Good Faith, compared to lawyers who are clearly also highly qualified but whose only Insurance experience is in suing Insurance companies.

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Katrina CatClaims Revisited: State Farm Settles, Is Sued Again.

    It appears that State Farm may have been sued again for Bad Faith as a result of Hurricane Katrina Catastrophe Claims -- indirectly, this time.

    There was once a settlement agreement, among many policyholders and State Farm, in Mississippi.  The proposed settlement agreement was subject to Federal Court approval.  The Federal Judge was confronted with more questions than answers when he was presented with the proposed settlement for his approval.  The Federal Judge refused to approve it, at least until the many questions were answered.

     State Farm then reportedly reached a settlement agreement of many of the same claims with the Mississippi Insurance Commissioner's Office.  This lengthy previous history was summarized in "Update to the Update:  New Settlement in Mississippi," posted on March 20, 2007 on "Insurance Claims And Issues".   

    It is now reported that the State of Mississippi, through the Mississippi Attorney General, filed a new Complaint on Monday, June 11, 2007 in Mississippi State Court.  The new Complaint contains allegations, it is reported, that State Farm breached the (first) settlement agreement and thus breached a contract.  The new Complaint contains demands for compensatory and punitive damages.  More will be posted as the Complaint becomes available.  As of the night of June 11, 2007, there was a momentary silence on the subject on the web sites of both the Mississippi Attorney General and the Mississippi Insurance Commissioner.

     Here is a link to State Farm's Press Release of June 11, 2007,which State Farm entitled "Mississippi Attorney General's Lawsuit Threatens to Disrupt Hurricane Katrina Settlement Process with MIssissippi Insurance Department". 

     Here is a link to the whole available story on "Insurance Claims And Issues".
   
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Postscript to Secrecy.

 A postscript to the concerns about Secrecy in Settlements, which can  particularly be a concern in Bad Faith Cases in many jurisdictions, is found at Insurance Claims and Issues.   In addition to the previous posts found here concerning "Settlement of Bad Faith Claims .... When is That Settlement Confidential and Protected, And When is it Concealment and Void? " on May 23, 2007, and a second post here, addressing potential issues raised by the "World Trade Center Insurance Claims Settlement:  Confidentiality vs. Concealment Revisited" on May 24, 2007, now see also a column, "America's Secret Obsession", published in the Washington Post on Sunday, June 10, 2007 and examined in the postscript on Insurance Claims and Issues.

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