This much is undisputed: In June 2014, comedian Tracy Morgan and three other passengers riding in a limousine were rear-ended by a tractor-trailer rig. One passenger died. Another had a compound leg fracture. And, as noted in one recent media recounting of the crash, "Morgan suffered a brain injury and broke his leg and ribs."
Notwithstanding a national insurer's firm view that the merits are on its side in a dispute with a policyholder, litigation involving the firm's alleged bad-faith behavior in underpaying a claim will continue to go forward.
As we have duly noted many times in prior select posts, insurance-related litigation can be exceedingly nuanced and complex, often focusing on technical language, differing interpretations of "what happened" in a matter, the actual causes underlying or triggering an event under a policy and additional considerations.
That above-posed blog headline cuts straight to the chase concerning subject matter that often takes center stage in contractual disputes between policyholders and insurance companies in Colorado and elsewhere across the country.
What if you're enticed by Frito-Lay's "Betcha Can't Eat Just One" challenge regarding its potato chips, and you actually command sufficient restraint to turn down that second chip?
A national online real estate listing firm was recently schooled in rather expensive fashion as to the merits of being duly proactive in taking care of business in an insurance claim.
A policyholder's demand of an insurance company to pay up for the loss of a personal stockpile of marijuana -- through fire, theft, water damage or some other cause -- would have been simply unthinkable a generation ago.
Draft it better.
Although California-based incidents certainly serve as the most prominently spotlighted examples of contested insurance coverage in incidents involving shifting ground (think mudslides, earthquakes and so forth), so-called "earth movement" cases also arise in insurance litigation in many other states as well, including Colorado.
It's a fair question: If an insurance company is found to have breached its contractual duty to defend a case against an insured party, but hasn't acted in bad faith in doing so (in other words, it made a conscientious decision to deny coverage in good faith), is its liability capped by policy limits plus defense costs?