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.
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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