Recently, Allstate and its insured reached a 22 Million Dollar bad faith settlement. Accoridng to this article Liability and damages were clear but Allstate initially refused to tender the policy limits of $250,000.
In Louisiana, policyholders also have protections against bad faith practices. By statute, insurers owe policyholders and some third party claimants a duty of good faith and fair dealing. That includes a duty to settle cases within a reasonable amount of time. The bad faith statutes extend to both personal injury and property damage claims. If the insurers don’t follow the law, then penalties and attorney fees can be awarded.
Reach out to me today if you need help with an insurance claim. I’ve routinely used the bad faith statutes as leverage to settle personal injury and property insurance claims for clients. I only take cases where my clients are in the right. So if a fair settlement cannot be reached, we are in a good position to litigate the case, using the courts to achieve a good result.