Protection Against Extracontractual Exposure
Chicago partner Jamie Sanders and associate Bill Pipal had their article, “ Protection Against Extracontractual Exposure,” published in the Summer/Fall issue of the Journal of American Law.
“Courts across the country are in general agreement that, when a tort claimant makes a demand to settle within the applicable limits of the defendant’s liability insurance policy, the defendant’s insurer has a duty to settle when certain factors are present. When the duty is breached, the insurer can become liable for the full amount of the verdict, even if it exceeds the policy limits. What is not clear, however, is whether an insurer has an independent duty to affirmatively attempt to effectuate a settlement where the tort claimant has not made a settlement demand,” the duo argue. “This article explores how [a number of courts] have analyzed this issue and the policy concerns that have impacted their analysis.”