Insurance Disputes

Several Firm members in their early years of practice at other firms, and during KNL&H's early years as a law firm, provided insurance coverage opinions. Although the Firm departed from an "insurance defense" practice over 20 years ago, our clients often have insurance coverage potentially available to afford defense and indemnity. We have the expertise to analyze our clients' coverage positions to advocate for indemnification of exposure and relief from legal defense costs. From time to time we engage in insurance coverage litigation on behalf of our clients in furtherance of obtaining coverage for them. The following are examples of recent litigation handled by the Firm that concerned insurance issues:

• The Firm defended a disability insurance carrier against an action filed in San Diego Superior Court by a self-employed entrepreneur who claimed that he was totally disabled from conducting any work because of back pain. In particular, he had been unsuccessful in promoting or obtaining seed money for an invention, which he blamed on his back pain. After removing the case to federal court under ERISA and thereby foreclosing the Plaintiff's ability to pursue punitive bad faith damages, and after discovering that despite his claimed back injury, Plaintiff was able to lift and carry his elementary school daughter, a confidential settlement was reached that included a surrender of the policy.
• The Firm represented an insurance carrier in a dispute between several insurance companies concerning which of the insurers' respective commercial general liability policies covered the defense and indemnity of an insured contractor in an underlying action seeking millions of dollars for construction defects at a large residential development.
• The Firm represented homeowners who made a claim for coverage for damage to their residence after the insurance carrier delayed responding to and failed to investigate the insureds' claim. A settlement was reached shortly before trial.
• The Firm represented a life insurance company that learned that brokers in California were engaged in a fraudulent scheme to market and sell universal life insurance products. When the insurance company terminated the agency agreements with the brokers, the brokers sued. After the insurance company had countersued and taken the depositions of the brokers' key witnesses, the case was settled favorably to the insurance company.
• The Firm represented an elderly woman in an action against a large insurance company, and other defendants, engaged in the sale of annuities. During discovery, it was learned that the defendants had engaged in a scheme to gain the confidence of senior citizens by selling them unnecessary "legal services," and later soliciting sales of annuities from senior citizens. A confidential settlement was reached for the client.