HomeWebcastThe “Bad Faith Set-Up” in Insurance Litigation: How to Avoid Risks and Legal Pitfalls
Online CLE Insurance Litigation CLE

The “Bad Faith Set-Up” in Insurance Litigation: How to Avoid Risks and Legal Pitfalls

Live Webcast Date: Wednesday, November 14, 2018 from 3:00 pm to 5:00 pm (ET)
Insurance (CLE)Litigation (CLE)Recording

Online CLE Insurance Litigation

For the past years, bad faith claims have been added as part of coverage cases against insurers. This "bad faith set-up" provides leverage to plaintiffs because it allows them to use aggressive litigation tactics by creating claims by design. In this Webcast, a panel of thought leaders and professionals brought together by The Knowledge Group will provide the audience with an in-depth analysis of the fundamentals as well as recent trends and developments surrounding "Bad Faith Set-Up" in Insurance Litigation. Speakers will discuss the mechanisms of “bad faith set-up" in insurance litigation. They will also provide the audience with practical tips and best practices to avoid potential risks and pitfalls.

Key topics include:

  • Bad Faith Set-Up in Insurance Litigation: Legal Framework
  • Common "Red Flags" in a Bad Faith Set-Up
  • Opportunities and Challenges
  • Recent Case Decisions
  • 2018 Trends, Developments and Updates
  • What Lies Ahead

Agenda

SEGMENT 1:
Edward Currie, Jr., Shareholder
Currie Johnson & Myers, P.A.,

  • The Bad Faith Set-Up Generally: “Manufactured Litigation”
  • The Importance of Early Recognition of a Set-Up: Typical Fact Patterns
    • Third Party Claims
    • First Party Claims
  • Developing a Responsive Strategy to the Set-Up
    • Third Party Claims
    • First Party Claims

SEGMENT 2:
Connie Ray Stockham, Shareholder
Stockham, Cooper & Potts, P.C.

First Party Claims

  • “Abnormal” bad faith
  • Reliance on policy provisions violative of state’s unique laws
  • Declaratory judgment action use

Third Party Claims

  • Failure to investigate bad faith
  • Reliance on statutory limits/caps
  • Declaratory judgment action/intervention use
  • Reservation of rights – a factor in third party bad faith
  • Multi-factorial third party bad faith claims –  attention required

SEGMENT 3:
Michelle Burton, Managing Partner
Shoecraft Burton, LLP

Third Party Claims:

  • Conveniently timed and premature policy limit demands;
  • Suspected collusion between insured and claimant;
  • Stipulated judgments in exchange for covenants not to execute.

Frist Party Claims:

  • Reasonable repairs provision to increase EMS estimate    
  • Public Adjuster/attorney letter writing campaign to:
  • Requests for denials in writing as to scope disputes
  • Appraisal Demands

SEGMENT 4:
Thomas Segalla Esq., Partner
Goldberg Segalla

  • Identification of sensitive claims that insurers have to be aware of in today's environment.
  • Proactive approaches to minimize risks.
  • How can counsel assist insurers in protecting them from bad faith set-ups?

Who Should Attend

  • Insurers
  • Insurance Attorneys and Counsel
  • Insurance Litigators
  • In-House Counsel
  • Corporate Risk Managers
  • Insurance Claims Professionals
  • Insurer Counsel
  • Policyholders
  • Insurance Practitioners
  • Insurance Companies

Preview Podcast

Please click the podcast below to hear the speakers discuss the key topics for this webcast.

Online CLE Insurance Litigation

SEGMENT 1:
Edward Currie, Jr., Shareholder
Currie Johnson & Myers, P.A.,

  • The Bad Faith Set-Up Generally: “Manufactured Litigation”
  • The Importance of Early Recognition of a Set-Up: Typical Fact Patterns
    • Third Party Claims
    • First Party Claims
  • Developing a Responsive Strategy to the Set-Up
    • Third Party Claims
    • First Party Claims

SEGMENT 2:
Connie Ray Stockham, Shareholder
Stockham, Cooper & Potts, P.C.

First Party Claims

  • “Abnormal” bad faith
  • Reliance on policy provisions violative of state’s unique laws
  • Declaratory judgment action use

Third Party Claims

  • Failure to investigate bad faith
  • Reliance on statutory limits/caps
  • Declaratory judgment action/intervention use
  • Reservation of rights – a factor in third party bad faith
  • Multi-factorial third party bad faith claims –  attention required

SEGMENT 3:
Michelle Burton, Managing Partner
Shoecraft Burton, LLP

Third Party Claims:

  • Conveniently timed and premature policy limit demands;
  • Suspected collusion between insured and claimant;
  • Stipulated judgments in exchange for covenants not to execute.

Frist Party Claims:

  • Reasonable repairs provision to increase EMS estimate    
  • Public Adjuster/attorney letter writing campaign to:
  • Requests for denials in writing as to scope disputes
  • Appraisal Demands

SEGMENT 4:
Thomas Segalla Esq., Partner
Goldberg Segalla

  • Identification of sensitive claims that insurers have to be aware of in today's environment.
  • Proactive approaches to minimize risks.
  • How can counsel assist insurers in protecting them from bad faith set-ups?

Online CLE Insurance Litigation

Online CLE Insurance Litigation

Edward Currie, Jr.ShareholderCurrie Johnson & Myers, P.A.,

EDWARD J. “Ned” CURRIE, JR., is a Shareholder at Currie Johnson & Myers, PA, with offices in Jackson and Biloxi, Mississippi. Mr. Currie graduated from the University of Mississippi School of Law in 1976.  He has spent his career in the courtroom representing the interests of insurers in complex insurance coverage matters and bad faith defense - as well as personal injury defense - having tried over 175 jury cases to verdict.  Mr. Currie is the immediate Past President of the American College of Coverage and Extracontractual Counsel.  He currently serves on the Board of Directors of the Federation of Defense and Corporate Counsel and on the Mississippi Supreme Court Advisory Committee for the Rules of Civil Procedure.  Mr. Currie is Past President of the Mississippi Defense Lawyers Association which bestowed upon him its 2016 Lifetime Achievement Award, and Past President of the Mississippi Chapter of the Federal Bar Association.  He is a member of the American Law Institute, International Association of Defense Counsel, and is a Fellow of Litigation Counsel of America.  Mr. Currie was recognized by Corporate Intl Magazine as 2016 Mississippi Product Liability Attorney of the Year, by Best Lawyers as 2016 Mississippi Lawyer of the Year for Personal Injury Litigation-Defense, by International Global Law Experts as 2014 Mississippi Product Liability Lawyer of the Year, and by Best Lawyers as 2012 Mississippi Lawyer of the Year for Insurance Law.  He also is listed by Super Lawyers in the Top 50: 2015 Mississippi Super Lawyers and was listed by the Mississippi Business Journal in the 2013 Top 10 Leaders in Law in Mississippi.  Listed by the American Lawyer & Martindale Hubbell as a Top Rated Lawyer in Insurance, Mr. Currie has written and lectured widely on an array of insurance coverage issues.

Online CLE Insurance Litigation

Michelle BurtonManaging PartnerShoecraft Burton, LLP

Michelle Burton is the Managing Partner of Shoecraft ♦ Burton LLP, a boutique civil litigation firm specializing in complex insurance coverage, bad faith defense, insurance defense, and professional liability.  Ms. Burton has obtained numerous jury trial defense verdicts for her clients against multi-million dollar claims throughout California. In addition to her trial practice, Ms. Burton is a Certified Appellate Specialist and has authored and argued numerous appeals addressing insurance-related matters including Douglas v. Fidelity Insurance Company, the leading case on rescission in California. She was trial and appellate counsel on a case consolidated for oral argument with Lee v. California Capital Insurance Co., the recently-decided case which provides important guidance to appraisers and umpires for appraisals involving a disputed scope.  She advocated many of the contentions adopted by the Court of Appeal in its published decision.  Ms. Burton provides Fair Claims Training, Good Faith Claims Handling Training, Insurers Obligations to Resolve Claims and Appraisal Training for her clients. She has also been a panel speaker at the Association of Business Trial Lawyers Annual Seminar on “The Use of Social Media in Jury Selection” and “The Use of Technology During Trial.” She has presented at the Combined Claims Conference on the topic of property appraisals and has given webinars on policy rescission and misrepresentation. She is currently the Vice President of the San Diego Chapter of the Association of Business Trial Lawyers, was recognized as a Lawyer of Distinction in 2015 in Civil Litigation and is a Fellow of the American Bar Foundation which is open to one percent of lawyers for their commitment to the legal profession and their community. Ms. Burton was the Media Chair for the Informed Voters Project educating the public about judicial elections and is the President of Run Women Run a Political Action Committee dedicated to the advancement of women in politics.  Ms. Burton is frequently asked by media to comment on political and legal issues.

Online CLE Insurance Litigation

Thomas Segalla Esq.PartnerGoldberg Segalla

Thomas Segalla is a nationally recognized authority on bad faith, reinsurance, and insurance, an ARIAS-U.S. Certified Arbitrator and mediator, and a founding partner of the firm. He has been retained as counsel and as a consultant by numerous major insurance carriers and policyholders in more than 40 jurisdictions nationally and internationally, and has served as an expert witness in more than 100 bad faith, coverage, and extracontractual cases across the country. His practice focuses on the defense, and insurance coverage, and claims-handling process of matters involving bad faith; construction site personal injury accidents (Labor Law §§ 200, 240(1) and 241(6)); toxic tort and environmental issues; and extracontractual, product liability, professional liability and railroad litigation. He also has experience representing and advising life science, pharmaceutical, and medical device industry clients. In 2016, Tom was honored with the Distinguished Alumni Award for Private Practice by the State University of New York at Buffalo Law Alumni Association in recognition of his contributions to the legal profession and the community in which he serves.

Tom is the co-author of the renowned insurance law treatise Couch on Insurance 3d and editor ofthe Reinsurance Professional’s Deskbook published by Thomson Reuters and DRI, and he has published and lectured extensively for many professional organizations and provided in-house training for clients. As a member of the Defense Research Institute (DRI), he currently serves on the organization’s Publications Board and Barrister Task Force and has previously served as Chair of DRI’s Insurance Law Committee, Chair of its Law Institute, and a member of its Board of Directors. In addition, as a member of the Federation of Defense and Corporate Counsel, he is integrally involved in the relationship between the insurance industry and defense counsel. Tom is the immediate past president of the American College of Coverage and Extracontractual Counsel, an organization which brings together the top insurance lawyers representing insurers and policyholders in the U.S. and Canada to focus on the creative, ethical, and efficient adjudication of disputes between policyholders and insurers over insurance coverage as well as extracontractual damages. Recently, Best Lawyers in America named him Buffalo Insurance Law "Lawyer of the Year" and the Defense Association of New York (DANY) presented Tom with its 2014 James S. Conway Award for Outstanding Service to the Defense Community.

Online CLE Insurance Litigation

Connie Ray StockhamShareholderStockham, Cooper & Potts, P.C.

Connie Ray Stockham is the managing partner of Stockham, Cooper & Potts, P. C. of which she was a founding member. Upon her entry to the practice of law in the late 1970’s, Connie learned she thrived on the challenging and rapidly evolving torts of bad faith, fraud and products liability in her home state. Fresh out of completing a federal clerkship with U. S. District Judge James Hancock, Connie was entrusted with handling the appeal of one of the first bad faith verdicts in the State of Alabama, which was also the largest verdict in the rural county where it had been rendered. With its reversal, Connie embarked on what has been a career of handling not only matters from the lower court filing but also being the lawyer who is called on an early Saturday morning after a client receives a bad verdict. On the heels of the early bad faith reversal, Connie became involved in the 11th Circuit landmark trigger of coverage litigation, Commercial Union v Sepco. Along the way, she was able to dispense with the bad faith claim in Sepco on summary judgment. Not one to refuse a challenge, Connie represented one of the firm’s long standing insurance clients in a politically charged invasion of privacy case that she took from a $15 million verdict to a $5 million remittitur to a reversal to zero on appeal.

Having founded and successfully led a trial and appellate firm for almost twenty years, Connie thought it was time to take a backseat in the active practice of law and focus more on her role as an adjunct professor in the Honors College at The University of Alabama at Birmingham. She and her clients quickly realized that she was not ready for such a move. Therefore, she recruited a group of seasoned trial lawyers and formed a new law firm that continues to provide the level of excellence and service that her clients have come to expect over the years.

Now having practiced law for more than thirty-nine years, Connie has served as lead attorney in a broad range of complex litigated matters, ranging from bad faith to invasion of privacy, insurance coverage and contractual disputes, reinsurance, construction matters, medical, nursing home and pharmaceutical malpractice products liability, mass tort and environmental actions, personal injury and death cases of many types. Having handled over forty appellate cases, she is called on regularly to take on cases after an adverse judgment to handle appeal and retrial. As one of the Best Lawyers in America, Connie realizes that years of experience now inform the counsel her clients seek and the advocacy she vigorously practices.


Click Here to Read Additional Material

Online CLE Insurance Litigation

Course Level:
   Intermediate

Advance Preparation:
   Print and review course materials

Method Of Presentation:
   On-demand Webcast

Prerequisite:
   Experience in insurance law

Course Code:
   147502

NY Category of CLE Credit:
   Areas of Professional Practice

Total Credits:
    2.0 CLE

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About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

The attorneys of Currie Johnson & Myers, P.A., handle a variety of cases in state and federal courts throughout the State of Mississippi and adjacent states.  The firm regularly handles cases involving insurance coverage and bad faith defense, defense of personal injury, property, casualty, premises liability, products liability, medical mal practice, matters pertaining to health care facilities, as well as civil rights actions against local municipalities and counties. The firm also represents clients in defense of employment and discrimination cases. The firm was named as a Top 500 Go To Law Firm for 2013 and 2014. The firm was named as 2013 Law Firm of the Year i n Insurance Law for Mississippi and 2014 Product Liability Law Firm of the Year in Mississippi, by International Law Global Experts.  The firm was named as a Best Law Firm by Best Lawyers, Top Tier in the fields of persona l injury defense, medical mal practice-defense and insurance law for the years 20 I 0-2015. The firm has been listed for over 12 years by Best's as a recommended insurance law firm.

Website: https://www.curriejohnson.com/

Shoecraft Burton, LLP is a multi-practice boutique civil litigation firm that provides proactive, cost-conscious and aggressive legal services tailored to its clients’ goals. The firm specializes in litigation, complex insurance coverage matters and appeals. Over the years, the firm has successfully defended and prosecuted hundreds of matters on behalf of insurance companies, policyholders, insurance brokers, corporate and individual clients, developers as well as, municipalities and public entities. The firm has particular expertise in defending insurance bad faith matters, fraudulent insurance claims, insurance application fraud, first party defense and third party defense, premises liability actions, errors and omissions claims against insurance brokers and architects and engineers. The firm routinely provides coverage advice on all lines of insurance for insurers, conducts examinations under oath and drafts, and reviews policy language proposed by insurers for potential future coverage issues. The firm also offers risk management services and litigation avoidance strategies to its insurance and corporate clients designed to mitigate litigation costs. Such services include review of claims manuals, underwriting guidelines, Title 10 certification, training seminars on claims handling and errors and omissions and review of corporate insurance programs.

Website: http://www.shoecraftburton.com/

Goldberg Segalla is a law firm nearly 300 lawyers strong, with 19 offices spanning nine states (New York, Illinois, Florida, Maryland, Missouri, North Carolina, Pennsylvania, New Jersey, and Connecticut) and in Europe (in London, where it operates as Goldberg Segalla Global LLP). It counsels and protects the interests of regional, national, and international clients, including a number of Fortune 100 companies, in a wide range of industries. Goldberg Segalla handles all forms of dispute resolution and provides proactive legal and regulatory counsel that helps clients minimize and manage risk in a broad array of areas.

Founded in 2001, the firm is proud to be ranked among the top 200 on the National Law Journal’s NLJ 500 list of the largest law firms in the United States. Goldberg Segalla has been recognized by its clients and peers — as well as by the National Law Journal, Law360, Reactions, LexisNexis, the Minority Corporate Counsel Association, and others — for reliability, innovation, commitment to diversity, and prominence in key practices and industries. The firm’s collaborative culture and team-first philosophy have earned it continual placement in national, regional and statewide rankings of the best places to work. To learn more, visit www.GoldbergSegalla.com.

Website: http://www.goldbergsegalla.com/

EDWARD J. “Ned” CURRIE, JR., is a Shareholder at Currie Johnson & Myers, PA, with offices in Jackson and Biloxi, Mississippi. Mr. Currie graduated from the University of Mississippi School of Law in 1976.  He has spent his career in the courtroom representing the interests of insurers in complex insurance coverage matters and bad faith defense - as well as personal injury defense - having tried over 175 jury cases to verdict.  Mr. Currie is the immediate Past President of the American College of Coverage and Extracontractual Counsel.  He currently serves on the Board of Directors of the Federation of Defense and Corporate Counsel and on the Mississippi Supreme Court Advisory Committee for the Rules of Civil Procedure.  Mr. Currie is Past President of the Mississippi Defense Lawyers Association which bestowed upon him its 2016 Lifetime Achievement Award, and Past President of the Mississippi Chapter of the Federal Bar Association.  He is a member of the American Law Institute, International Association of Defense Counsel, and is a Fellow of Litigation Counsel of America.  Mr. Currie was recognized by Corporate Intl Magazine as 2016 Mississippi Product Liability Attorney of the Year, by Best Lawyers as 2016 Mississippi Lawyer of the Year for Personal Injury Litigation-Defense, by International Global Law Experts as 2014 Mississippi Product Liability Lawyer of the Year, and by Best Lawyers as 2012 Mississippi Lawyer of the Year for Insurance Law.  He also is listed by Super Lawyers in the Top 50: 2015 Mississippi Super Lawyers and was listed by the Mississippi Business Journal in the 2013 Top 10 Leaders in Law in Mississippi.  Listed by the American Lawyer & Martindale Hubbell as a Top Rated Lawyer in Insurance, Mr. Currie has written and lectured widely on an array of insurance coverage issues.

Michelle Burton is the Managing Partner of Shoecraft ♦ Burton LLP, a boutique civil litigation firm specializing in complex insurance coverage, bad faith defense, insurance defense, and professional liability.  Ms. Burton has obtained numerous jury trial defense verdicts for her clients against multi-million dollar claims throughout California. In addition to her trial practice, Ms. Burton is a Certified Appellate Specialist and has authored and argued numerous appeals addressing insurance-related matters including Douglas v. Fidelity Insurance Company, the leading case on rescission in California. She was trial and appellate counsel on a case consolidated for oral argument with Lee v. California Capital Insurance Co., the recently-decided case which provides important guidance to appraisers and umpires for appraisals involving a disputed scope.  She advocated many of the contentions adopted by the Court of Appeal in its published decision.  Ms. Burton provides Fair Claims Training, Good Faith Claims Handling Training, Insurers Obligations to Resolve Claims and Appraisal Training for her clients. She has also been a panel speaker at the Association of Business Trial Lawyers Annual Seminar on “The Use of Social Media in Jury Selection” and “The Use of Technology During Trial.” She has presented at the Combined Claims Conference on the topic of property appraisals and has given webinars on policy rescission and misrepresentation. She is currently the Vice President of the San Diego Chapter of the Association of Business Trial Lawyers, was recognized as a Lawyer of Distinction in 2015 in Civil Litigation and is a Fellow of the American Bar Foundation which is open to one percent of lawyers for their commitment to the legal profession and their community. Ms. Burton was the Media Chair for the Informed Voters Project educating the public about judicial elections and is the President of Run Women Run a Political Action Committee dedicated to the advancement of women in politics.  Ms. Burton is frequently asked by media to comment on political and legal issues.

Thomas Segalla is a nationally recognized authority on bad faith, reinsurance, and insurance, an ARIAS-U.S. Certified Arbitrator and mediator, and a founding partner of the firm. He has been retained as counsel and as a consultant by numerous major insurance carriers and policyholders in more than 40 jurisdictions nationally and internationally, and has served as an expert witness in more than 100 bad faith, coverage, and extracontractual cases across the country. His practice focuses on the defense, and insurance coverage, and claims-handling process of matters involving bad faith; construction site personal injury accidents (Labor Law §§ 200, 240(1) and 241(6)); toxic tort and environmental issues; and extracontractual, product liability, professional liability and railroad litigation. He also has experience representing and advising life science, pharmaceutical, and medical device industry clients. In 2016, Tom was honored with the Distinguished Alumni Award for Private Practice by the State University of New York at Buffalo Law Alumni Association in recognition of his contributions to the legal profession and the community in which he serves.

Tom is the co-author of the renowned insurance law treatise Couch on Insurance 3d and editor ofthe Reinsurance Professional’s Deskbook published by Thomson Reuters and DRI, and he has published and lectured extensively for many professional organizations and provided in-house training for clients. As a member of the Defense Research Institute (DRI), he currently serves on the organization’s Publications Board and Barrister Task Force and has previously served as Chair of DRI’s Insurance Law Committee, Chair of its Law Institute, and a member of its Board of Directors. In addition, as a member of the Federation of Defense and Corporate Counsel, he is integrally involved in the relationship between the insurance industry and defense counsel. Tom is the immediate past president of the American College of Coverage and Extracontractual Counsel, an organization which brings together the top insurance lawyers representing insurers and policyholders in the U.S. and Canada to focus on the creative, ethical, and efficient adjudication of disputes between policyholders and insurers over insurance coverage as well as extracontractual damages. Recently, Best Lawyers in America named him Buffalo Insurance Law "Lawyer of the Year" and the Defense Association of New York (DANY) presented Tom with its 2014 James S. Conway Award for Outstanding Service to the Defense Community.

Connie Ray Stockham is the managing partner of Stockham, Cooper & Potts, P. C. of which she was a founding member. Upon her entry to the practice of law in the late 1970’s, Connie learned she thrived on the challenging and rapidly evolving torts of bad faith, fraud and products liability in her home state. Fresh out of completing a federal clerkship with U. S. District Judge James Hancock, Connie was entrusted with handling the appeal of one of the first bad faith verdicts in the State of Alabama, which was also the largest verdict in the rural county where it had been rendered. With its reversal, Connie embarked on what has been a career of handling not only matters from the lower court filing but also being the lawyer who is called on an early Saturday morning after a client receives a bad verdict. On the heels of the early bad faith reversal, Connie became involved in the 11th Circuit landmark trigger of coverage litigation, Commercial Union v Sepco. Along the way, she was able to dispense with the bad faith claim in Sepco on summary judgment. Not one to refuse a challenge, Connie represented one of the firm’s long standing insurance clients in a politically charged invasion of privacy case that she took from a $15 million verdict to a $5 million remittitur to a reversal to zero on appeal.

Having founded and successfully led a trial and appellate firm for almost twenty years, Connie thought it was time to take a backseat in the active practice of law and focus more on her role as an adjunct professor in the Honors College at The University of Alabama at Birmingham. She and her clients quickly realized that she was not ready for such a move. Therefore, she recruited a group of seasoned trial lawyers and formed a new law firm that continues to provide the level of excellence and service that her clients have come to expect over the years.

Now having practiced law for more than thirty-nine years, Connie has served as lead attorney in a broad range of complex litigated matters, ranging from bad faith to invasion of privacy, insurance coverage and contractual disputes, reinsurance, construction matters, medical, nursing home and pharmaceutical malpractice products liability, mass tort and environmental actions, personal injury and death cases of many types. Having handled over forty appellate cases, she is called on regularly to take on cases after an adverse judgment to handle appeal and retrial. As one of the Best Lawyers in America, Connie realizes that years of experience now inform the counsel her clients seek and the advocacy she vigorously practices.

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