In Georgia, bad faith claims brought by a policyholder against the insurer are codified by statute specifying the requirements for a policyholder to recover a civil remedy for an insurer's bad faith refusal to pay a valid claim: In Georgia, bad faith claims brought by a policyholder against the insurer are codified by statute specifying the requirements for a policyholder to recover a civil remedy for an insurer’s bad faith refusal to pay a valid claim: In the event of a loss which is covered by a policy of insurance and the refusal of the insurer to pay the same within 60 days after a demand has been made by the holder of the policy and a finding has been made that such refusal was in ... Continue Reading
Court Rules Claims Notes Prepared After Anticipation Are Discoverable For Bad Faith Claims But Only After Bifurcation of Claims for Breach of Contract and Bad Faith
For decades attorneys for insurance companies and insureds have debated the discoverability of documents contained in the insurer's claims file. Frequently, the debate concerns when an insurer will be required to produce documents prepared in anticipation of litigation. An increasing number of courts are addressing whether claims notes prepared in anticipation in cases must be produced in cases involving bad faith claims. Judge Tilman Self with the Middle District of Georgia ruled in 2018 that such claims notes are discoverable for a bad faith claim, but not for a breach of contract claim, resulting in the bifurcation of the two claims. For decades attorneys for insurance companies and ... Continue Reading
Dual Coverage for Workers’ Compensation Insurance Under a Voluntary Policy and Assigned Risk Plan in Georgia
Georgia employers are required by law to retain workers' compensation insurance if they employ three or more full time, part time, or seasonal employees. This is an arduous endeavor, however, as several employers are unable to obtain workers' compensation coverage in the standard insurance market. Fortunately, every state provides employers an opportunity to acquire workers' compensation insurance through a Workers' Compensation Assigned Risk Plan, Pool, or Residual Market. Georgia employers are required by law to retain workers’ compensation insurance if they employ three or more full time, part time, or seasonal employees. This is an arduous endeavor, however, as several ... Continue Reading
Georgia Mandates Notification Requirements for Data Breaches
In light of the increasing cyber data breaches over the last couple of years, Georgia companies must be aware of the legal requirements that are triggered a company discovers or reasonably believes that a breach in the security of the unencrypted personal information data of any Georgia resident has occurred. O.C.G.A. § 10-1-912. In light of the increasing cyber data breaches over the last couple of years, Georgia companies must be aware of the legal requirements that are triggered a company discovers or reasonably believes that a breach in the security of the unencrypted personal information data of any Georgia resident has occurred. O.C.G.A. § 10-1-912. Not all companies are subject ... Continue Reading
State and Federal Courts Continue to Reject Public Policy Challenges to Arbitration Clauses
Recent decisions by the Georgia Court of Appeals and the United States Supreme Court make it easier for parties to avoid court and resolve their disputes in arbitration. In each decision, a party sought to avoid arbitration by advancing arguments against arbitration based on public policy. The courts rejected these public policy type arguments, making it more difficult for a party to avoid arbitration when there is an arbitration clause that covers the suit or claim. Recent decisions by the Georgia Court of Appeals and the United States Supreme Court make it easier for parties to avoid court and resolve their disputes in arbitration. In each decision, a party sought to avoid ... Continue Reading
Clarification or Counteroffer? Choose Your Words Carefully
A recent opinion out of the Georgia Court of Appeals is forcing insurers to choose their words carefully when seeking clarification regarding time-limited settlement demands. In Yim v. Carr, the Court of Appeals reversed a ruling that a defendant driver's insurer had accepted the plaintiff's time-limited demand for the policy's limits, holding instead that the insurer's request for clarification regarding the scope of the offer's release was not an "unequivocal acceptance" of the offer, but rather a counteroffer. The holding is likely to be appealed to the Supreme Court of Georgia, but in the meantime, it is causing some hand-wringing among insurance representatives and the defense ... Continue Reading
Duty to Indemnify/Duty to Defend
When drafting contracts, parties must always consider the risk associated with the transaction. One of the most common ways to limit risk is by including an indemnity provision. However, as a best practice, indemnity alone is not enough to limit a contracting party's risk. In addition, a duty to defend provision should also be included as part of the indemnity provision of every contract. This article will examine the significance of each. When drafting contracts, parties must always consider the risk associated with the transaction. One of the most common ways to limit risk is by including an indemnity provision. However, as a best practice, indemnity alone is not enough to limit a ... Continue Reading
“Future-Proof” Your Company: Effective Business Succession Planning
Starting and running a business is a complex venture that comes with many daily challenges. But, long-term planning to ensure a smooth transition out of a business is an even greater challenge, one that is often ignored until it is too late. Some entrepreneurs start out with the assumption they are going to sell their company within a few years, but this usually does not happen, and unfortunately, most business owners do not have an end-game. The most common reasons entrepreneurs and business owners lack of long-term planning are: (i) fear of failing in the short-term; (ii) day-to-day operations keep them busy, preventing them from focusing on their long-term goals; (iii) they do not have a ... Continue Reading
Sharing Provisions in Protective Orders
We have noticed a troubling trend in recent product liability cases in which plaintiffs’ counsel will not agree to a protective order concerning a manufacturer’s confidential documents without the inclusion of a so-called “sharing provision”. These provisions generally permit plaintiffs’ attorneys, or any other parties subject to the protective order, to indefinitely retain a defendant’s confidential documents and share them with third parties as they see fit. Opposing counsel often justify such provisions by arguing that the confidential documents will only be shared with parties in other pending or litigation involving the same product. However, many manufacturers ... Continue Reading
Supreme Court of Georgia Oral Arguments in February
Steve Miller, serving as counsel for Milliken & Company, urge the high court to reverse the Court of Appeals decision, arguing that it "overrides the plain language of Georgia's antiindemnity statute," Georgia Code § 13-8-2 (b). That statute prohibits only indemnity agreements "1) where the injury is caused by or resulting from the 'sole negligence' of the indemnitee," which in this case would be Milliken, and "2) that relate to the construction, alteration, repair, or maintenance of a building structure, appurtenance, or appliance." Supreme Court of Georgia, December 10, 2018 Oral Arguments ... Continue Reading