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CA's 'Genuine Dispute' Doctrine
Under California law, there is a covenant of good faith and fair dealing that is implied in every contract, including insurance contracts. This covenant of good faith and fair dealing has been held to impose certain “duties” upon insurers, such as the duty to investigate claims thoroughly; the duty not to deny coverage based on an unduly restrictive interpretation of the policy or by using improper standards; and the duty not to unreasonably delay in processing or paying claims. Love v. Fire Ins. Exch., 221 Cal. App. 3d 1136, 1148 (1990) (citing various cases). If an insurer breaches the covenant of good faith and fair dealing, an insured is entitled to seek tort damages for that breach ' but only if the insured can establish that the policy provided coverage in the first place. Id. at 1153. Thus, to prevail on such a claim, an insured bears the burden of proving that: 1) benefits due under the policy were withheld, and 2) the reasons for withholding benefits were unreasonable or without proper cause. Id. at 1151.
An insurer can successfully defend against an alleged breach of the duty of good faith and fair dealing, however, if it can show that there was a “genuine dispute” with the insured with respect to the existence of coverage liability or the amount of the claim. Under the “genuine dispute” doctrine, an insurer cannot be held liable for tort damages for “bad faith” when it mistakenly withholds policy benefits, so long as the mistake is objectively reasonable at the time that it was made. See, e.g., Morris v. Paul Revere Life Ins. Co., 109 Cal. App. 4th 966, 973, 977 (2003); Chateau Chamberay Homeowners Ass'n v. Assoc. Int'l Ins. Co., 90 Cal. App. 4th 335, 347 (2001). Because a court can conclude as a matter of law that an insurer has not breached the implied covenant of good faith and fair dealing due to the existence of a “genuine dispute” as to its coverage liability, insurers can generally raise the “genuine dispute” defense in several phases of litigation with the insured: 1) on a demurrer to or a motion to dismiss a complaint; 2) on a motion for summary adjudication or judgment; and 3) at trial before a jury, as a last resort.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.