Bad Faith Claims

Lugenbuhl’s bad faith claims team is equipped to protect our clients from bad faith allegations throughout Louisiana and Texas as it relates to property and liability policies of insurance.

Before litigation is ever instituted, our primary goal is to protect our clients from potential bad faith claims. To accomplish that goal, we assist our clients in effectively resolving claims and achieving effective dispute resolution without running afoul of Louisiana or Texas law governing bad faith. Further, Lugenbuhl counsels our insurance company clients before litigation ever ensues. In particular, Lugenbuhl assists its clients in making decisions about:

  • Investigation, evaluation, and timely payment of property claims where appropriate
  • Whether to defend under reservation of rights
  • Whether to decline coverage
  • Whether to rescind policies

In addition, Lugenbuhl assists our clients in deciding whether to seek declaratory-judgment actions in order to obtain early and efficient coverage determinations in favorable jurisdictions.

If retained after litigation has already ensued, Lugenbuhl defends bad faith suits initiated not only by first-party claimants under homeowner’s policies, commercial business property policies, control-of-well policies, and operator’s-extra-expense policies, but also by third-party claimants under commercial general liability policies, professional liability policies, and employer’s liability/workmen’s compensation policies.

With respect to first-party bad faith claims, Lugenbuhl’s bad faith-coverage team has extensive litigation experience concerning whether there has been a satisfactory proof of loss that has triggered payment of undisputed amounts under the policy; assignment of bad faith claims to third persons; and whether statutory requirements have been satisfied.

Because Louisiana permits third-party claims to be asserted directly against insurers under the Direct Action Statute, La. R.S. 22:1269, liability insurers often find themselves involved in bad faith litigation with third-party claimants. Lugenbuhl’s in-depth knowledge of Louisiana law interpreting statutory penalty provisions enables us to develop early exit strategies. Typical third-party bad faith claims include: whether a third-party claimant can legally assert particular types of bad faith claims; whether certain payments, including settlements, were timely; whether a third-party claimant has been properly assigned to an insured’s bad faith claim; and whether policy terms were misrepresented.