Policyholder v. Carriers
Even carriers that act properly are often sued for breach of the implied covenant of good faith and fair dealing. Thankfully, recourse is available when the carrier hires Hardiman & Carroll.
The carrier insured the driver at fault in an auto accident. The damaged party, Smith, submitted the claim to his own insurance carrier, which paid to repair the vehicle. Smith wanted the vehicle totaled and refused to take possession of the repaired automobile. Smith’s carrier submitted a subrogation claim to Cheryl Castrogiovanni Guz’s carrier client. To protect its insured, Cheryl’s client paid the claim.
Thereafter, Smith sued his carrier for mishandling the claim. Cheryl’s client and its third party claims administrator were also named in the complaint under causes of action for breach of the implied covenant of good faith and fair dealing, interference with contract, unfair business practices and conspiracy.
Cheryl ultimately filed a motion for summary adjudication. Based on Cheryl’s persuasive legal arguments, the motion was granted and both the carrier client and the TPA were extricated from the action without the need for protracted discovery or expense.