INTERNATIONAL MARINE CLAIMS INTERNATIONAL MARINE CLAIMS CONFERENCE 2004CONFERENCE 2004

BILL MILLIKENBILL MILLIKEN

HAYDEN AND MILLIKEN P.A.HAYDEN AND MILLIKEN P.A.

FLORIDAFLORIDA

COMMUNICATIONCOMMUNICATION

WHAT IS THE WORST THING THAT CAN WHAT IS THE WORST THING THAT CAN HAPPEN IF IT BREAKS DOWN?HAPPEN IF IT BREAKS DOWN?

BAD FAITHBAD FAITH

FIRST PARTY BAD FAITHFIRST PARTY BAD FAITH

FACTORS:FACTORS:

ABSENCE OF A REASONABLE BASIS FOR ABSENCE OF A REASONABLE BASIS FOR DENYING THE BENEFITS OF THE INSURANCE DENYING THE BENEFITS OF THE INSURANCE CONTRACTCONTRACT

INSURER’S KNOWLEDGE OR RECKLESS INSURER’S KNOWLEDGE OR RECKLESS DISREGARD CONCERNING THE LACK OF A DISREGARD CONCERNING THE LACK OF A REASONABLE BASIS FOR DENYING THE CLAIMREASONABLE BASIS FOR DENYING THE CLAIM

DEFENSES DEFENSES

FIRST PARTY BAD FAITHFIRST PARTY BAD FAITH

EFFORTS OR MEASURES TAKEN BY THE INSURER EFFORTS OR MEASURES TAKEN BY THE INSURER TO RESOLVE THE COVERAGE DISPUTE PROMPTLY TO RESOLVE THE COVERAGE DISPUTE PROMPTLY SO AS TO LIMIT ANY POTENTIAL PREJUDICE TO THE SO AS TO LIMIT ANY POTENTIAL PREJUDICE TO THE INSUREDINSURED

THE SUBSTANCE OF THE COVERAGE DISPUTE OR THE SUBSTANCE OF THE COVERAGE DISPUTE OR WEIGHT OF LEGAL AUTHORITY ON THE COVERAGE WEIGHT OF LEGAL AUTHORITY ON THE COVERAGE ISSUESISSUES

THE INSURER’S DILIGENCE AND THOROUGHNESS IN THE INSURER’S DILIGENCE AND THOROUGHNESS IN INVESTIGATING THE FACTS SPECIFICALLY INVESTIGATING THE FACTS SPECIFICALLY PERTINENT TO COVERAGEPERTINENT TO COVERAGE

THIRD PARTY BAD FAITHTHIRD PARTY BAD FAITH

FACTORS:FACTORS:

FAILING TO SETTLE WITHIN THE POLICY LIMITSFAILING TO SETTLE WITHIN THE POLICY LIMITS

FAILING TO MAKE AN OFFER OF SETTLEMENT IN FAILING TO MAKE AN OFFER OF SETTLEMENT IN A CASE WHERE LIABILITY IS CLEAR AND A CASE WHERE LIABILITY IS CLEAR AND DAMAGES EXCEED POLICY LIMITSDAMAGES EXCEED POLICY LIMITS

FAILING TO WARN THE INSURED OF THE FAILING TO WARN THE INSURED OF THE POSSIBILITY OF AN EXCESS JUDGMENTPOSSIBILITY OF AN EXCESS JUDGMENT

FAILING TO EXERCISE DUE CARE IN THE FAILING TO EXERCISE DUE CARE IN THE INVESTIGATION AND EVALUATION OF THE INVESTIGATION AND EVALUATION OF THE CLAIMCLAIM

DEFENSES DEFENSES

THIRD PARTY BAD FAITHTHIRD PARTY BAD FAITH

ACT IN GOOD FAITHACT IN GOOD FAITH

ADVICE OF COUNSELADVICE OF COUNSEL

DAMAGESDAMAGES

COMPENSATORYCOMPENSATORY

LOST PROFITSLOST PROFITS

MENTAL ANGUISHMENTAL ANGUISH

PRE-JUDGMENT INTERESTPRE-JUDGMENT INTEREST

ATTORNEYS FEESATTORNEYS FEES

PUNITIVE DAMAGESPUNITIVE DAMAGES

PUNITIVE DAMAGESPUNITIVE DAMAGES

TEST:TEST:

A GENERAL BUSINESS PRACTICE AS A GENERAL BUSINESS PRACTICE AS OPPOSED TO AN ISOLATED ACTOPPOSED TO AN ISOLATED ACT

WILLFUL, WANTON AND MALICIOUS OR WILLFUL, WANTON AND MALICIOUS OR RECKLESS DISREGARD FOR THE RIGHTS RECKLESS DISREGARD FOR THE RIGHTS OF THE INSUREDOF THE INSURED

TRIPARTITE RELATIONSHIPTRIPARTITE RELATIONSHIP

ATTORNEY HIRED AND PAID BY ATTORNEY HIRED AND PAID BY INSURER TO REPRESENT INSUREDINSURER TO REPRESENT INSURED

TRIPARTITE RELATIONSHIPTRIPARTITE RELATIONSHIP

RULES OF PROFESSIONAL CONDUCTRULES OF PROFESSIONAL CONDUCT

OBLIGATIONOBLIGATION

CONFLICT OF INTERESTCONFLICT OF INTEREST

LICENSELICENSE

MALPRACTICEMALPRACTICE

BAD FAITHBAD FAITH

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