Insurance companies have a number of tactics they use when they are attempting to act in bad faith. One of the most objectionable actions that an insurer can take is to cancel a policy after having received premium payments for years.The attorneys at Millin & Millin recognize such bad faith insurance tactics for what they are and fully believe that no policyholder should ever be subjected to such deceitful behavior.
While insurance companies do have certain rights when canceling a policy, they also have duties owed to the consumer and must follow the terms of the agreement in order to act in good faith. If your insurer has canceled your policy without providing you a written communication explaining their reasoning, then you should immediately contact a bad faith insurance law firm to ensure that you have the proper representation to get what is properly owed to you.
In order to effectively understand when an insurer is acting in bad faith, it is important to first recognize when they DO have the right to cancel a policy.
First and foremost, it is vital that you as the policyholder always read the contract you are signing, or obtain assistance from an experienced lawyer to help you understand the provisions of the policy. It is your responsibility as the consumer to be as informed as possible.
Depending on the provisions of the contract, most insurance companies are usually allowed to cancel a policy within the first 60 days. During this period, the insurer has more leeway when it comes to reneging on the policy.
Some of the legitimate reasons an insurance agency can cancel your policy include:
If your insurer is legitimately able to uncover faults and conditions that make you ineligible for coverage, then they must send you a written notice explaining their reasons for canceling.
This initial cancellation can be repealed and should be done so if you believe that their arguments are invalid.
Your insurer is not allowed to simply cancel your policy for no reason nor without explaining why.
The Texas Insurance Code sets the legal standard for how insurance companies must go about canceling a policy and sets the requirements for the written statement that must be provided to you, including:
Bad faith cancellation can occur through a number of methods including:
If your insurer has acted in such a manner under no reasonable proof, then you may be the victim of bad faith insurance policy cancellation.
Unfortunately, post-claim underwriting is often seen following an insurance claim. This is a transparent attempt to avoid paying out what is rightfully owed to the insured and will often lead to the victim carrying the financial burden of the loss.
Sadly, some insurance companies are going to attempt to act in bad faith in order to keep as much money as possible. If you have made an insurance claim after a disastrous event and your insurer is attempting to claim your policy was canceled, don’t just accept it, fight back with Millin & Millin.
Our bad faith insurance lawyers have advocated for McAllen metro residents who have had to deal with bad faith insurance tactics. Our attorneys possess superior experience and the necessary knowledge to bring forth an exceptional case.
Contact us at (956) 631-5600 for a free consultation.
After filing an insurance claim, most families will expect their insurer to act in good faith. As a policyholder, it’s natural to expect the process to work in your favor, especially when you have maintained a solid payment record. When an individual has been involved in a situation that affects their way of life, compensation may be needed immediately to diminish unexpected financial burdens.
Unfortunately, insurance companies do not always act in the best interests of their policyholders, and they use bad faith techniques to diminish the payout or completely reject the claim on illegal grounds.
The bad faith insurance lawyers of Millin & Millin want to ensure that you have the necessary knowledge to protect yourself from the unacceptable actions of your insurer. What follows are some of the most frequently asked questions about insurance bad faith.
The team of attorneys at Millin & Millin have the experience, knowledge, and ability to represent individuals, businesses, and property owners in the Rio Grande Valley against all the major insurance companies. Millin & Millin has secured tens of millions of dollars in unpaid benefits for clients. From health, life, home, and auto, our attorneys are effective and swift.
Contact us today at (956) 631-5600 for a free case evaluation and to find out how we can help you with your bad faith insurance claim.
During the holiday season, accidental fires tend to occur more frequently because of various reasons: Christmas trees catching ablaze, bad wiring on Christmas lights igniting, electric blankets malfunctioning, or electrical space heaters being placed too close to fire hazards.
When a family faces a catastrophic event like a house fire, the stress added on by insurance companies acting in bad faith can be downright deplorable. In the aftermath of such a misfortune, your family will expect to file an insurance claim and quickly receive compensation for the damage done to their home - this isn’t always the case.
The attorney’s of Millin & Millin are here to help you fight against insurers who are acting in bad faith and making it hard to receive payout for your legitimate home fire claim. It’s important to realize that it is not uncommon that insurers practice in bad faith, but also that you can oppose their illegitimate denials.
If you should find yourself filing a fire insurance claim, then pay attention to some of the common warning signs that your insurer is seeking to act in bad faith. By being familiar with these tactics used by insurance companies, you can know when it’s time to challenge them.
[bctt tweet="Fire insurance claim? Bad faith insurer? Millin & Millin will fight for you. #bad #faith #tactics #MillinMillin #mcallen #fire #claim" via="no"]
Tactic #1 - Your insurer will claim that you do not have an active policy.
One of the first bad faith tactics that insurers will resort to, this sort of behavior generally means they are looking to deny your claim. This type of practice is known as post-claim underwriting and includes insurers alleging that you missed a payment or did not renew your policy when it expired.
As a policyholder, you need to remember that:
In these sorts of scenarios, you’ll have to prove that you do indeed have an active policy. Bank statements showing timely monthly payments can be a crucial piece of evidence.
Tactic #2 - Your insurer says you policy doesn’t cover fire damage.
Insurers may claim that while you do have an active policy with them, it does not specifically cover damage associated with a fire claim. That’s why it is essential that at the time of purchase, you have a clear understanding that coverage does indeed extend to fire claims. You’ll also want to read through the insurance policy to make sure that fire damage protection is mentioned.
If your policy does cover the damage mentioned in the claim, then you’ll likely need the support of an experienced legal team to help you fight the insurer’s bad faith tactics. Millin & Millin can help you get the full compensation that you legally deserve.
[bctt tweet="Bad Faith Tactic #2 - Your insurer says you policy doesn’t cover fire damage. #fight" via="no"]
Tactic #3 - The insurance adjuster is dragging out the investigation.
After any insurance claim, an insurance company will utilize their own adjusters to investigate. In the case of a fire, adjusters will usually determine:
While these investigations can generally take some time to complete (especially when other parties are involved), the decision on your claim should occur within a reasonable timeframe. In the state of Texas, the acknowledgment must come within 15 days, and approval or denial of the claim within 15 days after receipt of all requested information. The insurance company has the option of extending the time for up to 45 days if it offers an explanation for the extension.
If you have not received any information, or a claim approval or denial in a timely manner, then this can be a red flag that the insurer is purposely prolonging the investigation to frustrate you into accepting a settlement that is far less than the claim is actually worth.
Tactic #4 - Placing blame on you.
During the investigation, the insurance adjuster should be able to find a reasonable cause for the fire. However, your insurance company may attempt to claim your negligence caused the accident or damage.
If your fire insurance claim is denied on this basis, it is vital that you hire a lawyer that can defend your rights and challenge the insurer. In the case of a fire, there are often a number of parties (including fire departments, police departments, and public adjusters) that can provide evidence on your behalf. An effective law team can ensure that you receive this assistance and will guide you through the process to help you obtain the full amount you are entitled to.
[bctt tweet="Bad Faith Tactic #4 - Placing blame on you. #not #your #fault" via="no"]
Tactic #5 - Your insurer claims damage mentioned in the claim predated the fire.
An insurer may use this bad faith practice to allege that some (or even all) of the damage existed prior to the fire. By using this tactic, your insurer is attempting to avoid paying your claim in its entirety.
In order to effectively oppose this, it is vital to keep insurance logs and home maintenance records. It’s always a good idea to take pictures of your home’s structure, so as to have evidence of how the house looked prior to sustaining any natural or accidental damages.
Even the most vigilant, safest family has accidents. If you are having to file an insurance claim, it’s likely due to the fact that you have just suffered through a terrible event. Having to deal with the unscrupulous tactics of an insurance company is the last thing you need on your plate during this time.
Depend on the responsiveness of the Millin & Millin legal team to get the justice you deserve. Contact us today at (956) 631-5600 to get the legal representation you need to fight for your rights.
After purchasing a building in 1994, a Houston man known as Davis, found himself in a horrible bind after realizing that his roof had sustained damages from natural causes.
When Davis originally purchased the building, he knew that the roof was composed of asphalt and a rubber material, but he didn’t know the exact age of the roof nor did he find a need to replace it. Naturally, Davis purchased an insurance policy to ensure the coverage of any future damages.
Davis was running his business from the building, and living there as well, which further cemented his need for insurance on the property. National Lloyds Insurance Company (Lloyds) insured his property against wind, fire, and hail.
Unfortunately, Davis’ policy did not cover rain damages “unless the building or structure first sustains wind or hail damage to its roof or walls through which the rain [can enter]”. The policy also stated that it would “determine the value of the covered property in the event of loss or damage ... [at] actual cash value as of the time of loss or damage”.
Optional coverages were offered, including replacement cost value coverage that Davis declined. The policy had a $3,700 deductible for building damage and a $2,500 deductible for damages to the building’s contents.
Houston was struck by Hurricane Rita in 2005 and many individuals suffered property damage - including Davis. He immediately noticed roof leaks right after the storm and decided to file a claim, which was unfortunately denied.
Davis had no other choice, but to use out of pocket money to hire a contractor to repair the building to its original state. The work performed put a pause on the leakage, until 2008, when Houston underwent another natural catastrophe - Hurricane Ike.
The roof once again began to leak and the property underwent other damages to a shingled area and an AC unit. Again, a Lloyds adjuster inspected the damages, but only valued them at $1,825, ensuring no payment was to be made to Davis.
Luckily, a public adjuster made an additional inspection, and this time, asserted that the property had incurred damages directly caused by Hurricane Ike and that they were above Davis’s $3,700 deductible.
Davis ultimately filed a lawsuit and alleged a breach of contract, violation of the Texas insurance code, and breach of good faith and fair dealing. When both parties were at trial, plenty of disagreements arose in regards to what evidence showed was the cause of the roof leakage.
Lloyds’ experts concluded that the roof was old and had previously shown a leakage issue in 1997. Both parties also disagreed on the cost of repairs.
Experts who represented Davis asserted that $108,038.75 was owed in repair cost, while Lloyds’ experts argued that the price was inaccurate and did not differentiate between covered damages from non-covered damages.
Lamentably, the court concluded that Davis’ policy only covered cash value, which the jury determined was below the deductible. Although it was a fact that the condition of the roof was defective and needed to be replaced, Davis’ policy only covered damages done by hail and wind.
The trial court also concluded that the insurer could not be liable for bad faith since no payment was liable under the terms of the insurance contract.
Are you struggling to receive your fair share of compensation? Is your insurance company claiming your policy didn’t cover damages by arguing about unclear language? The tough team of attorneys at Millin & Millin have fought for the rights of a multitude of individuals. Call us today for a free case evaluation at (956) 631-5600.
Every insurance company owes it to their policyholders to act in good faith. When an insured individual has been involved in a circumstance that directly affects his or her way of life, the policyholder usually files an insurance claim immediately so that compensation can be granted and to diminish unexpected financial burdens.
Lamentably, policyholders face deeper issues when their insurer deceives them.
Although acting in bad faith, or implementing unfair practices in a valid claim, is out of compliance with the Texas Insurance Code, insurance companies sometimes prefer to not fulfill contractual obligations for their own advantage.
Are you currently dealing with a bad faith insurance situation?
Let the attorneys at Millin and Millin represent your case.
Although insurance companies are responsible for bad faith practices, insurance adjusters also play a role in this wrongful behavior. Adjusters have the responsibility of processing and properly investigating a claim, developing reasons why a claim should be denied, and figuring out whether the policyholder was at fault in a given incident.
In most cases, adjusters will spend hours investigating and trying to find details and evidence that can aid in denying a claim. These acts help adjusters implement claim evaluation techniques that can have a negative effect on a policyholder’s claim.
Courts around the nation have concluded that an insurance company must have systems that their adjusters can depend on when evaluating a claim. Although a bad faith act should never be a company standard, nobody truly knows exactly how insurance companies operate, so it’s difficult to get a full disclosure of what happens behind closed doors. There are, however, recognized tactics that are utilized by insurance companies.
Below is a list of examples that can aid in identifying a bad faith act:
There are certain steps that can be taken if you believe that your insurance company is acting in bad faith. Those include contacting the adjuster’s supervisor or taking legal action in an attempt to recover what is owed to you.
Most people begin by gathering all the facts and vital proof that can be used to back up their assertion. It is also advisable that claimants keep their cool when attempting to contact a supervisor about the matter; cooler heads prevail and will help you to receive the attention of a higher authority rather than being disregarded as a vexed claimant.
After your conversation, stay in contact, and following up as needed. Make sure that you send a certified letter to both the supervisor and a copy to the adjuster. Summarize all the elements that were discussed by phone and add an additional paragraph that details why you believe your adjuster acted in bad faith.
Conclude by saying that you are hopeful that both the insurance company and adjuster will begin a fair negotiation of your claim and that you will seek legal representation if the situation does not change.
If you find that your claim was rejected even after attempting to come to an honest agreement, then do not hesitate to contact the attorneys at Millin & Millin. Our litigators have advocated for McAllen metro residents who have had to deal with bad faith insurance tactics. Our attorneys possess superior experience and the necessary knowledge to bring forth an exceptional case.
Contact us at (956) 631-5600 for a free consultation.
In life, one thing that is guaranteed and cannot be avoided is change, and it sometimes comes as a surprise whether one likes it or not. But there are two types of change: those that we embrace and the ones that negatively affect our well being. So, what do you do when life throws you a curveball?
Perhaps you were in an accident that caused severe injuries, or you were a victim of catastrophic loss, in which your property and belongings were destroyed. The most reasonable response would be turning to your insurance company to obtain the necessary compensation.
After all, you are only seeking the financial help that rightfully belongs to you as a policyholder. While for the most part, there are plenty of devoted and loyal insurance companies who care about seeing you back on your feet after a life changing event, not all insurance companies have your best interest in mind.
Acts of bad faith happen all the time, but you do not have to be a victim. If you or a loved one are struggling to obtain fair compensation after an accident or unexpected event, contact Millin & Millin PLLC today. Our reputation and impeccable knowledge in civil litigation has helped many individuals take advantage of their legal rights.
How do you know if your insurance company is acting in bad faith?
Below are a few examples of insurance bad acts:
An insurance bad faith results in deeper loss for the company when the insurer fails to provide the claimant what he or she deserves by law. In one bad faith case, there was a man who was struck by a truck as he raked the leaves of his front yard.
Apparently, the driver had jumped the curb and hit the man. The injured individual was rushed to the hospital where he was diagnosed with a broken neck, brain hemorrhages, and a herniated disk.
Weeks after the incident, the man received minimal compensation from the driver’s insurance company and so decided to file a claim right after.
The insurance company was required to pay him $100,000 in underinsured motorist coverage. After his claim was ignored and unfairly denied, the man sued the insurance company and received $8.2 million in damages.
Those who do not have to worry about whether they must pay taxes on bad faith litigation recoveries are those who are granted compensatory damages for physical injuries or physical sickness.
Individuals who are not adequately compensated or whose health has worsened because of an insurance company’s failure to provide appropriate compensation are usually exempt from paying taxes.
However, one key element to take into consideration is to understand who paid the premiums on the insurance policy. If your employer paid the premium than you are subject to taxation.
The team at Millin & Millin PLLC is ready to advocate for your legal rights. We have helped a multitude of individuals from all around the Rio Grande Valley deal with bad faith insurance claims. Contact us today for a free case evaluation at (956) 631-5600.
If you are having to file an insurance claim, it’s likely due to the fact that you have just suffered through a terrible event. Having to deal with the unscrupulous tactics of an insurance company is the last thing you need on your plate during this time.
Luckily, there are steps that you can take to help you avoid the frustration of dealing with purposely dragging insurance companies. You can also depend on the responsiveness of the Millin & Millin legal team. Our dedication to justice and results means you get the support you need when seeking your rightful compensation from deceitful insurers.
On top of having Millin & Millin as your advocates when dealing with bad faith tactics, we also recommend utilizing technology to help you work through the claims process. Web tools, insurer apps, and even smart-phone cameras can be vital resources to help you gather evidence, prepare a claim, and submit information to help support your case.
Unfortunately, even when following the appropriate measures to ensure a successful - fully paid claim - your insurer may still attempt to pay you less than what is rightfully yours. Fight back with these tips.
With today’s technology, you no longer have to physically write down everything you own. Nowadays, you can just utilize the camera on your smartphone or tablet to take video of all your possessions, as well as details about your home and its architecture.
You’ll want to take as many pictures as possible, as well as note down any attention grabbing details about your home. The more information you have on hand, the easier it will be for you to recall the particulars should you file a claim at some point.
If you should experience a house-damaging event, then photograph the source of the damage. After taking the necessary steps in gathering information (i.e. pictures and video) then go ahead and do what you must to prevent further damage. However, do not commence with cleanup or repairs until the insurance adjuster has visited you.
When the claims process begins, remember that insurer apps can make sending pictures and other records to the company much more efficient, so take advantage of these options. Also, keep in contact with the adjuster frequently (once a week) by phone or email. During the repairs process, keep receipts for any expenses you paid for as a direct result of having of the damage occur (i.e. supplies used to help contain the damage).
Be aware that filing a small claim may cause a rate increase, so if possible, fix the issue yourself to avoid having a higher premium.
Fighting back: If your insurer continues to hassle you over miniscule or irrelevant details during the claims process then get in contact with your state insurance department. There are usually free services that the department offers that will help you through the claims process and help to ensure you get the legal compensation you’re entitled to under your policy.
Car accidents happen in an instant, but the effects can be felt for a lifetime. Though the stress of being an involved in an accident can make it challenging to gather all the information needed for an insurance claim, try and remain calm.
It’s essential that you do NOT simply exchange insurance and contact information with the other driver(s), but that you also take pictures of the incident. Take photos of the damage to your car, the damage to other cars involved, the accident scene, weather conditions, license plates, registration and insurance cards. If possible, get contact information from witnesses for future purposes. When police arrive and create an accident report, get the report number and a copy of the forms.
When all vital information has been gathered, contact your insurer.
You can generally use any repair shop to get your car fixed, but following the insurer’s recommendations may help to expedite the process.
Fighting back: If the chosen body shop claims that the repairs will cost more than the appraiser says, provide the shop’s estimate to your insurer. There may be differences in costs because of policy specifics, but in these scenarios you have the right to get an independent appraisal. Recruiting an independent party to your case may help you to settle the claim closer to what you feel is fitting.
If your insurer claims that the car is totaled, but value it at a significantly lower price than anticipated, then do some investigation into the selling prices of used cars with similar conditions as your own. You can also ask for the reasoning behind the lower payout. If you feel like the payment is still too low, contact your state insurance department.
Health insurance claims can be an exhausting experience because of a third party - your health care provider. During the purchasing phase of health insurance try and get a clear understanding of what exactly a policy will and will not cover - as well as service requirement specifications. For example, is pre-approval needed to obtain services at certain facilities?
Also, pay attention for out-of-pocket costs for an out-of-network provider. These charges tend to be higher than with in-network providers and processing them may be burdensome because the out-of-network provider has not set up a claims link with the insurer. Make sure to call your insurer with any questions you may have about out-of-network coverage and to take detailed notes of the conversation including date, time, the person you spoke with, and conversation points.
When making a claim, compare the doctor’s bill with the insurer’s explanation of benefits (EOB). Also, be aware that the doctor’s office may have sent you a bill prior to filing a claim with the insurer, so do not pay until you have received the EOB.
Fighting back: Claim denials may just be related to administrative problems, and occur for a number of reasons including the insurer needing additional information from the doctor or a mistake in the billing coding. It is highly recommended that you avoid simply making repeated phone calls and instead immediately go into the appeal process.
Your state insurance department can once again be of great benefit prior to the appeal. They can provide you guidance and information, especially when dealing with large claims. Make sure you have the proper evidence and documentation from your doctors on why a given procedure was necessary.
If after several attempts to rectify the issue and negotiate a claim effectively, the insurance company continues to act in a malicious manner, contact Millin & Millin PLLC immediately at 956-631-5600. Bad faith lawsuits can be complicated, but our experienced lawyers have the know-how to deal with any insurance company – big or small.
If after several attempts to rectify the issue and negotiate a claim effectively, the insurance company continues to act in a malicious manner, contact Millin & Millin PLLC immediately at 956-631-5600. Bad faith lawsuits can be complicated, but our experienced lawyers have the know-how to deal with any insurance company – big or small.
Lindsay Diaz lost her duplex home in Rowlett, Texas when Seagoville based Billy L Nabors Demolition mistakenly tore down the house following a rash of deadly tornados in late December 2015.
Unfortunately, individuals who have suffered damage to their home or property because of a negligent act by a business or corporation often encounter difficulty in seeking just compensation in their dispute with the offending party. Many businesses will engage in bad faith behavior to avoid liability for their actions. When a company commits a wrongful act against your property, you’ll want a law firm that is willing to fight for your legal rights. Millin & Millin, PLLC has the attorneys that are committed to making sure when you or your property are hurt by business wrongdoings, the company is held responsible.
According to the lawsuit filed by Diaz, the demolition company whose slogan is “We could wreck the world” - failed to perform due diligence when they erroneously drove to her duplex at 7601 and 7603 Calypso Drive, rather than their actual target home, which was located at 7601 Cousteau Driver.
The houses, which were a mere block away from one another, had both suffered tornado damage. Diaz, however, had not sought to have hers demolished and was actually anticipating fixing the building, but was simply waiting on a FEMA estimate before commencing with repairs. Diaz had even submitted a permit to rebuild, but then received that fateful phone call. Unfortunately, her plans had been completely rendered moot.
The chief executive of Nabors Demolition, George Gomez, claimed that the demolition crew was mistakenly sent to the wrong house because of a Google Maps error. At the time, the company crew was certain they had arrived at the right home and were confident they had torn down the correct structure until they were notified of their mistake.
It is purported that Gomez initially told one local news outlet that the demolition was “not a big deal” and that the company’s insurer would handle the situation. The statement began to circulate online, during which Diaz attempted to contact Nabors, but was unable to get in contact with the company.
It wasn’t until after thousands of residents responded to the story on Facebook, and after an influx of negative media coverage, the Diaz said the demolition company finally reached out to her to offer an apology. Diaz is quoted as saying, “I sat down with them and we spoke with them and they sincerely apologized. They promised to help and to make it right.”
However, since that conversation, Diaz has filed suit alleging that attorneys for Nabors have failed to agree to a full settlement for the mistaken demolition.
The lawyer representing Diaz added that Nabors Demolition also damaged the foundation of the property and have thus added to Diaz’s rebuilding costs. Furthermore, because the insurance repair estimates were based on the original damage the house sustained by the tornado, Diaz is now being forced to cover the total cost of rebuilding.
The legal representative of Diaz in her lawsuit against the company stated that Nabors were absolutely negligent in their failure to ensure that Diaz’s duplex was the correct home prior to initiating the demolition. “If you’re in a business of demolition, especially of homes, you need to have more due diligence. I think it was gross negligence. I think they should have taken additional step to make sure they were tearing down the right home.”
Regardless of the type of claim, the size of the case, or the subject of litigation, our lawyers have represented plaintiffs fighting for justice against all size of defendants. The attorneys at Millin & Millin, PLLC understand that those in need of legal representation are seeking qualified, excellent, and efficient lawyers. That’s exactly what our firm brings to the table.
Reach us at 956-631-5600 or contact us here to get the legal ability and dedication you deserve.
As originally found in the Daily Report Online, a federal judge ordered Nationwide Mutual Insurance Co. to pay more than $8.1M to the family of an auto accident victim. A jury determined that the insurer acted in bad faith by denying a claim for the death of the deceased woman, Stacey Camacho, who lost her life to a drunk driver.
More than $5.7 million of the total sum was awarded in a 2009 trial against the negligent party, and as of the the most recent trial, the court has still yet to determine an awarding for attorney fees because Nationwide did not settle in 2011 for $4.5 million.
This lawsuit, which took place in Georgia, was affected by the state’s offer judgment statute which asserts that the party that declines a settlement offer, and then losses in trial by at least 25 percent more than the rejected offer, can be forced to pay for the other party’s attorney fees. The representatives of the plaintiffs noted that this large amount was caused by Nationwide’s bad faith practices and would have only been $100,000 had they agreed to pay on the policy limit rather than insisting upon additional conditions.
Though every lawsuit has its own set of circumstances, and not every settlement ends in the millions, it’s still important to recognize that regardless of the size of the insurance company, if they are acting in bad faith, then there are lawyers who are willing to help you fight for the justice you deserve. Million & Million, PLLC are those lawyers. Our experience with bad faith practices and lawsuits means we can help you recover the monies that are rightfully yours.
In the underlying case, the 25-year-old mother died as a result of Seung Park slamming his commercial van in Camacho’s Toyota Tercel in 2005. The mother, who was driving with her 2-year-old son at the time, suffered fatal injuries and passed away the following day.
Park was sentenced to seven years in prison and five on parole after pleading guilty to vehicular homicide.
After the accident, Camacho’s husband and mother/executor retained a lawyer, who sent Nationwide a time-limited, 10-day demand for Park’s $100,000 policy limit, as well as an offer to shield Park from any personal liability from other claims aside from other insurance coverage available to the Camacho family. Nationwide rejected the offer and responded that they would only pay if the family supplied a general release which would force them to repay the insurer if other claims were made.
In 2011, after several years of litigation and an initial award of $5.85 million, the family retained new counsel (as their lawyers in the state case were potential witnesses) and pursued the bad faith lawsuit.
The pretrial defense filing reasoned that Nationwide had challenged the lawsuit on various grounds, including Park’s negligence as the proximate cause of the damages against him and that the family’s initial lawyer was attempting to instigate a bad faith claim by demanding specific type of releases in order to push the insurer beyond the 10-day demand letter deadline.
The defense team also claimed that the bad faith claim was a tort and that the case was truly about a breach of contract.
The plaintiff’s legal representatives said there was little discussion aside from a $500,000 offer from Nationwide shortly prior to the trial that was declined.
During the trial, the jury had to decide whether Nationwide acted in bad faith or negligently, with damages to be determined at a later date. Because of the intricacies of insurance laws, the plaintiff’s lawyers noted that they were challenged by the need to educate the jury about the processes and procedures of the insurance system and how they play out in a lawsuit.
After litigation that lasted a little over one week, the jury found for the plaintiffs.
The presiding judge noted that Nationwide’s claims adjuster had admitted to the handling of the initial demand letter as “not in line with industry custom and practice” and that “there was certain evidence from which the jury could infer that the plaintiffs were being jacked around in their settlement negotiations giving Nationwide’s conduct the flavor of bad faith.”
In total, the family was awarded $5,730,000, which was the amount of the state court judgment, plus what was at the time of entry, $2,405,873 in interest.
If you are experiencing similar difficulties with your insurance company, then find some relief in knowing that Millin & Millin, PLLC is here to help. We have a track record of going up against the big bad wolf insurance companies and successfully getting fair compensation for our clients. Schedule an appointment today in our McAllen office to find out how we can help you with your claim.
