American consumers and businesses buy insurance coverage to protect their personal and business assets from collection in the event that a claim is brought against them for causing an accident or injury. Their insurance company has a legal duty to make decisions regarding the claim that do not unreasonably expose the policyholder to the risk of losing their assets. While it is legally permissible for the insurance company to fight the claim in an effort to avoid paying out any money, the insurance company cannot unreasonably pursue the fight to the extent that the policyholder is at risk for a court judgment that would exceed the amount of insurance coverage the policyholder has in place. If the insurance company unreasonably fights the claim, resulting in a judgment that exceeds the insurance coverage, and the policyholder’s assets become subject to collection, the policyholder may sue their own insurance company for Bad Faith. Bad Faith is simply the allegation that an insurance company negligently or improperly failed to settle or to adjust a claim for an amount of money within the amount of insurance coverage, and it resulted in the policyholder being placed at risk of losing their assets.
- CATASTROPHIC INJURY
Injuries that result from the failure of others to act reasonably, as an ordinary person would be or from intentional acts of another gives rise to a claim for negligence. Personal injury claims can include both physical and/or emotional injury and may be catastrophic in proportion.
- CLASS ACTION
When a class of people are injured, misled or damaged by the conduct of a wrongdoer, the power and strength in their numbers may justify an action brought by the group that have been injured as a whole or class of individuals rather than a single claim. These are claims that otherwise would not be economically viable as an individual action brought by an individual claimant.
Whether the loss or injury arises from fraud or misrepresentation by a corporation about their product, and its benefits or their profitability for the purposes of increasing stock price, a group of consumers that have received improper charges on their billing statements or credit cards, or a group of people exposed to and injured by a dangerous chemical in their neighborhood, the position of the class or group of individuals may enhance the position of any one individual warranting a class action.
- STOCKBROKER MISCONDUCT
- INSURANCE LAW
- SMALL BUSINESS