High Exposure Claims, Coverage & Bad Faith Defense
As part of Alston & Bird’s comprehensive insurance practice, we routinely defend carriers in coverage and bad faith litigation under numerous types of policies, including Directors and Officers Liability, Errors and Omissions, Professional Liability, Environmental Liability, Employment Practices Liability, Life Insurance and Disability Insurance. Our experience includes representation in the individual coverage action and class action contexts. And we specialize in the defense of institutional issues—those that go to the very heart of your business practices and are often targeted in bad faith litigation by sophisticated plaintiffs’ and class counsel on multiple fronts in large-scale litigation. We often serve in the role of national coordinating counsel to direct the strategic defense of and harmonize discovery efforts in multifaceted claims and accompanying regulatory activity and regulation-driven litigation. Our attorneys also have represented institutional policyholders across the country in a variety of complex commercial coverage disputes.
- Represented one of the nation’s largest carriers as overall coverage and regulatory coordinating counsel concerning Hurricanes Katrina and Rita.
- Represented the nation’s largest property and casualty insurer in all facets of the litigation following Hurricane Ike, coordinated defense and discovery strategy across multiple firms and handled trials in Texas courts of individual cases that included institutional issues. Multiple defense verdicts enabled a global settlement on favorable terms.
- Represented a multinational insurance company as coverage counsel for high exposure and potential bad faith claims on professional liability policies.
- Represented a national retailer in an insurance declaratory judgment action involving a dispute relating to coverage for multiple serious injuries caused by a product sold by the retailer.
- Represented a credit card payment processor in an insurance declaratory judgment action relating to insurance coverage for costs and fines stemming from a large-scale data security breach.
- Represented a real estate listing service in an insurance declaratory judgment action involving a dispute relating to coverage for class action alleging violations of RESPA and the Sherman Act.
- Defended a major U.S. sugar producer in insurance coverage claims stemming from the 2008 sugar refinery explosion.
- Represented a major retailer of home improvement and construction products and services in coverage negotiations stemming from multi-plaintiff lead paint litigation in Mississippi.
- Defended a Mexico-based insurance company against bad faith and other claims by its insured, the world’s largest producer of Mexican corn products.
- Defeated class certification of a Colorado class action alleging that insureds were entitled to PIP benefits that were never offered or paid pursuant to Colorado statute. The complaint requested reformation of contract pursuant to the Colorado statute and alleged breach of contract, bad faith, willful and wanton breach of contract and violation of state deceptive trade practice laws.
- Defended a major property and casualty insurer against claims of bad faith in a declaratory judgment action involving over 50 defendants stemming from a large natural gas explosion occurring at a residence. The magnitude of the explosion resulted in damage to numerous surrounding homes, implicating approximately a dozen other insurance companies.
- Obtained a declaratory judgment for an insurer in the first known case in which the insured medical professional sought professional liability coverage for breach of fiduciary duty. The underlying claims against the insured were brought as a class action and alleged, among other things, that the insured professional breached a fiduciary duty owed to the patient/claimant.
- Engaged in property coverage analysis and negotiations concerning $100 million in contingent business interruption coverage relating to the terrorist attacks of September 11, 2001.
- Obtained summary judgment for insurer on several policy exclusions in interpleader action against 45 defendants to resolve competing claims totaling more than $30 million and address coverage issues on D&O policy.
- Successfully defended the insurer in a coverage action where the underlying claim alleged that an insured addiction counseling service was professionally negligent in the treatment and supervision of resident patients, resulting in the stabbing death of one patient.
- Represented a national insurance company in multiple putative class actions and mass actions brought by homeowners alleging breach of contract and bad faith for failure to adequately compensate plaintiffs for damages to their homes suffered in Hurricane Katrina.
- Defended the largest provider of supplemental insurance in a nationwide class action (Charleston, SC) alleging violations of civil RICO, fraud, breach of contract, bad faith and breach of fiduciary duty under ERISA.
- Represented numerous national insurers in putative class actions in Alabama, Arkansas and Montana asserting claims for bad faith on account of allegations of premature exercise of the right of subrogation prior to the insured being made whole.
- Served as national counsel for a multinational insurance corporation in numerous coverage and bad faith litigation matters, including a multimillion dollar suit brought by a copyright licensing association under a D&O policy, demand brought by a national garment manufacturer for defense costs under an EPL policy, arbitration proceedings concerning the scope of coverage under D&O insurance policies and appeals to the federal and state appellate courts involving complex issues of insurance law.
- Defended a Fortune Global 500 insurance company and successfully resolved several bad faith lawsuits seeking insurance coverage on group long–term disability policies.
- Asserted a bad faith claim on behalf of a Fortune 500 national retailer against the liability insurance carrier of a vendor that manufactured a consumer product that caused substantial injuries nationwide.
- Asserted a bad faith claim on behalf of a Fortune 1000 provider of processing services against a cyber liability insurance carrier for denial of coverage following a data security breach.
- Secured defense and indemnity payments on behalf of a hazards disclosure company under a CGL policy.
- American International Group, Inc. (AIG)
- State Farm
- Liberty Mutual
- Cotton States Mutual Insurance Company (now Country Financial)
- Safeco Insurance
- The Prudential Insurance Company of America
- First Acceptance Insurance Company