In a landmark decision, the Pennsylvania Supreme Court has held that claims under the Pennsylvania insurance bad faith statute may be assigned to third parties. This decision will enable plaintiffs who have obtained an excess verdict against a policyholder to not only pursue a common-law bad faith claim against the liability insurer for the excess verdict, but also pursue a statutory bad faith claim for punitive damages, attorney’s fees, interest, and costs. The Supreme Court’s decision in Allstate Prop. and Cas. Co. v. Wolfe answered a question certified by the United States Court of Appeals for the Third Circuit in
Read More
Monthly Archives December 2014
Happy Holidays From Clark & Fox
New Jersey Appellate Court Examines Impact of Claimant’s Settlement With Tortfeasors Upon Insurer’s Subrogation Rights
In Nucci v. American Ins. Co., the New Jersey Superior Court, Appellate Division, examined whether a policyholder’s settlement with alleged tortfeasors precludes an insurer from pursuing subrogation claims against the tortfeasors. While the Court did not issue any precedential decision at this time, the opinion indicates that it may ultimately determine whether tortfeasors who settle a claim with the primary insured while on notice of an insurer’s intent to seek subrogation remain exposed to subrogation claims by the insurer, even if the insurer is challenging coverage and has not paid the claim at the time of settlement. Nucci concerned a
Read More
New Jersey Appellate Court Declines to Hold Minor Liable for Sports Injury
In a case of first impression, the New Jersey Superior Court, Appellate Division, has declined to hold an eleven-year-old lacrosse player liable for a collision that resulted in a broken arm. In C.J.R. v. G.A., the Court established an approach to assessing liability against minors for sports-related injuries that significantly raises the bar for such claims. The case concerned an incident near the end of a youth lacrosse game, in which a twelve- year-old player had possession of the ball and was attempting to run out the clock. According to the player’s coach, an eleven-year-old member of the opposing team
Read More
