Insights
Publications

Insureds Rights Under Insurer "Litigation Guidelines"

3/18/2009 Blog

A lawsuit is filed, the defendant gives notice to the insurers, and in the meantime engages counsel to start the defense.  Several rounds of coverage opinion letters go back and forth, and finally – the insurer accepts the defense of the lawsuit (usually subject to a reservation of rights).  Meanwhile, defense counsel has been doing his or her job.  So surely, now all is well.  Defense bills incurred before the insurer agreed to defend are submitted for reimbursement. 

But then the insurer’s “litigation guidelines” arrive – explaining just how much of the insured’s defense the carrier will NOT pay for.  These guidelines often include completely unrealistic restrictions on the way the defense must be conducted.  Frequently, the guidelines exclude reimbursement for (and thus can be looked at as an insurer-imposed bar) such things as discussions between members of the defense team working on the case; emails between the defense team; leaving or listening to voicemails; and the attendance of more than one attorney at hearings or meetings, without regard for the requirement of attorneys with specialist knowledge.  Additionally, litigation guidelines regularly impose arbitrary restrictions on legal research; and arbitrary time limits on drafting of pleadings, no matter how complex.  And often, insurers impose these guidelines retroactively – back to the beginning of the case and long before they sent them to either the insured or to defense counsel.

Firm Highlights

Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part Two)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, Peter J. Georgiton, and J. Mark Hart Part 1 of our two-part article addressed the circumstances in which an insurer can directly pursue malpractice claims against...

Read More
Publication

Reporting Dispute Claims Within Closely Held Wineries

Many wineries operate as closely held companies, meaning they’re owned by an individual or small group of shareholders, who are often members of the same family. Disputes regarding ownership interests can arise, particularly when directors...

Read More
Publication

Insurance Market Crushes Wineries and Wine Country Homeowners

We keep hearing about how difficult it is for winery and vineyard owners to get property insurance these days, both for their homes and their wine businesses in California’s wildfire-prone areas. Those who have...

Read More
Publication

Disputes Between Shareholders May Not Be Governed by Fiduciary Duties but Could Be Covered by Insurance

(As published in Private Company Director ) Disputes regarding ownership interests often arise in the context of closely held corporations, particularly when directors, officers, or majority shareholders sell or acquire ownership interests in the...

Read More
Publication

Regulatory Changes Underway To Address Dwindling California Property Insurance Market

We keep hearing about how difficult it is for our clients to get property insurance these days, both for homes and businesses in Northern California’s wildfire-prone areas. Which, of course, is most of Northern...

Read More
Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part One)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, PeterJ. Georgiton, and John Mark Hart When an insurer accepts an insured’s tender and agrees to provide a defense, it is often an afterthought as to whether...

Read More
Publication

BIPA Liability: Existing CGL Coverage May Provide a Lifeline for Policyholders

Developments in the law have increased the potential liability that companies could face under the Illinois Biometric Information Privacy Act (BIPA), but fortunately for policyholders, Illinois case law has also solidified coverage for BIPA...

Read More
News

Farella Braun + Martel Earns 2024 Best Law Firms® Rankings

Read More