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Insurance

Mar. 21, 2009

A Genuine Pullback

Recent decisions pulling back on the genuine dispute doctrine are an apparent response to insurers' over-utilization of this doctrine.

Rex Heeseman

JAMS

555 W 5th St Fl 32
Los Angeles , CA 90013-1055

Phone: (213) 253-9772

Fax: (213) 620-0100

Email: rheeseman@jamsdar.com

Stanford Univ Law School

Rex Heeseman retired from the Los Angeles Count Superior Court bench in 2014. He is at JAMS, Los Angeles. Besides speaking at various MCLE programs, he co-authors The Rutter Group's practice guide on "Insurance Litigation." From 2002 to 2015, he was an adjunct professor at Loyola Law School.

The "genuine dispute" doctrine has long been a favorite of insurers. A couple of years ago, though, the proverbial pendulum started to swing back so that, at least in the foreseeable future, this doctrine will likely have less of an impact on the resolution of bad faith litigation. This negative impact on defendant insurers is similar, in many respects, to the recent trend restricting many awards of punitive damages, thus bothering policyholders and other plaintiffs.

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