Insurance Coverage Contingency
Our client operates a large public facility which was accused of disability discrimination (ADA compliance). The General Liability insurer defended, at significantly reduced reimbursement rates, leaving a large amount of defense costs unreimbursed. The other insurer, which explicit covered discrimination against customers (EPLI with Third Party Coverage), denied coverage claiming there wasn’t sufficient adverse conduct on the part of the insured. This was a multi-year battle. One of the most significant victories was when we defeated the insurer’s Motion for Summary Judgment – because, under California law, this was virtually a victory on bad faith. We also obtained an order from the court requiring the insurer to provide us with copies of all other similarly denied claims – which revealed a treasure trove of valuable information. At the second mediation (after the trial had been continued twice), we obtained a very favorable settlement.