Managing and Litigating First and Third-Party Bad Faith Claims: Insurer Strategies for Addressing Unique Challenges
Evaluating Opportunity to Settle Within Limits, Managing Open Claims, Prepping Company Witnesses, Neutralizing Plaintiff Trial Themes

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Insurance
- event Date
Thursday, December 14, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will discuss managing and litigating first and third-party bad faith claims from the insurer's perspective, focusing on the unique challenges bad faith claims present at all stages of the litigation and offering strategies for addressing them.
Faculty

Mr. Schildt is a Principal, Vice-Chair of the Firm's Insurance Law Department, and a nationally-recognized insurance/ERISA practitioner. He works out of the Firm's Pennsylvania and New Jersey offices and has devoted his entire legal career to representing insurers in coverage, ERISA, and bad faith matters. Mr. Schildt has been honored by being selected for inclusion in the 2018 – 2024 editions of The Best Lawyers In America, Insurance Law category. His national and broad-based coverage litigation and coverage opinion practice encompasses personal and commercial insurance claims and disputes in almost all areas, including disability claims, ERISA claims, bad faith claims, life/accidental death claims, CGL claims (including additional insured and construction defect disputes), property insurance claims, COVID business interruption claims, health insurance claims, commercial auto claims, policy rescission/policyholder fraud, professional liability claims, D&O claims, long-term care claims, and all types of casualty claims. He has been lead counsel in thousands of such disputes in many different federal courts, state courts, and arbitration forums. Mr. Schildt also handles complex coverage and bad faith matters involving excess verdicts, trigger issues, allocation, horizontal/vertical exhaustion, and the interaction among primary, excess, and umbrella policies. His practice group enjoys a 90% success rate on dispositive motions.

Litigation Counsel with the Brandywine Group of Insurance and Reinsurance Companies. With a practice focused on insurance coverage and bad faith litigation, Mr. Shay advises and represents national clients in a variety of complex coverage and bad faith disputes arising from both commercial and personal insurance policies, including: CGL coverage claims (including construction defect/injury matters); property insurance claims; commercial and personal automobile claims; policyholder fraud; policy rescission; health, life, and disability insurance claims; ERISA litigation regarding benefit claims and challenges to health plans, fiduciary issues, and sophisticated preemption issues; annuity and structured settlement disputes; class action litigation; indemnity disputes between insurers; and bad faith claims.

Mr. Miscioscia has a broad range of experience in complex insurance coverage, bad faith and commercial litigation matters. He is a knowledgeable and experienced coverage attorney and litigator who provides cost-effective, proactive advice to clients in the hopes of avoiding or minimizing litigation, and tenaciously represents clients in suit when needed.

Ms. Montague has a broad range of experience in complex and emerging issues in insurance coverage and commercial litigation. She manages complex, multimillion-dollar cases through all facets of litigation, from pre-trial strategy through post-trial relief. Ms. Montague represents insurance companies in state and federal courts nationwide, as well as in various alternative dispute resolution forums, including private arbitrations and mediations.
Description
The panel will begin with an overview of what bad faith means generally and how claims professionals can avoid it. The program will review common allegations of bad faith in handling first-party property claims and responding to short-fuse, time-limited settlement demands and case law addressing propriety as a matter of law.
In the context of third-party bad faith, the panel will address disclaimers and reservations, the duty to defend, and the duty to settle. Regarding defense, the webinar will discuss conflicts of interest, claims arising out of the failure to appoint independent counsel to avoid conflicting representation, or failure to provide competent counsel with certain expertise. Regarding settlement, the panel will discuss the factors to consider when evaluating an opportunity to settle within limits and related obligations that a primary insurer owes to the insured and excess insurers.
Listen as this panel of seasoned practice leaders addresses how litigating a bad faith action presents unique challenges at all stages of the litigation and how to address them, including: considerations of venue and the insured's right to a jury trial; discovery issues that arise frequently in bad faith cases; strategies for preparing company witnesses for depositions; what to do when the claim is "open" while the bad faith action is pending; how to combat some of the trial themes that insureds' counsel frequently employ; the potential damages available to an insured; and what to do if the adjuster or third-party adjuster (TPA) is included as a party in the bad faith case.
Outline
- Overview of bad faith
- The right and duty to settle third-party claims
- Acting in good faith and time-limited demands
- Managing and litigating the bad faith claim
Benefits
The panel will address these and other key issues:
- What is the difference between the legal standards for first versus third-party bad faith?
- How can the reservation of rights letter avoid or lead to allegations of bad faith?
- What are best practices for reviewing the obligation to settle?
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