Insurance & Personal Injury Attorney in Oklahoma CIty, Oklahoma
Can you tell us about a memorable insurance bad faith case you handled?
Can you tell us about a memorable insurance bad faith case you handled?
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Bad faith in insurance only arises when a policyholder sues their own insurance company, known as “first party” insurance. In Oklahoma, the legal standard for proving bad faith is very high. It’s comparable to a high jump in athletics: while many could clear a one or two-foot bar, the bar for bad faith is set at ten feet. Insurance companies must thoroughly investigate claims, evaluate them properly, and make fair offers promptly. This high standard doesn’t apply in typical car accident cases where the insurer is not involved, which is often where insurance companies encounter issues.
Explaining this burden to a jury highlights how different it is for insurance companies when dealing with their own policyholders. For example, in 2008, Mike Burridge and the team tried a case in Lawton, Oklahoma, where they demonstrated that an insurance company had acted egregiously towards its policyholders. The company withheld significant payments and made the insured fight hard to receive what was owed. This resulted in a $130 million jury verdict, including $30 million in punitive damages. The case settled afterward, emphasizing the need for insurance companies to act in good faith and treat their policyholders fairly, as required by law.
The ability to explain these duties clearly and make them relatable to a jury is crucial, especially since many people are unfamiliar with insurance terminology. Having spent the early part of their careers representing insurance companies, the team gained a deep understanding of the industry’s practices—knowledge not typically taught in law school. This experience turned out to be a significant advantage in later cases.
Oklahoma City, OK personal injury attorney Reggie Whitten tells the story of a memorable insurance bad faith case he handled. In discussing bad faith claims against insurance companies, he explained that bad faith primarily arises when an individual or entity covered by an insurance policy sues their own insurance company, a scenario known as first-party insurance. He noted that in Oklahoma, the law sets a notably high standard for bad faith claims, akin to a high jump competition where the bar is set exceptionally high, requiring thorough investigation, evaluation, and prompt fair offers from the insurance company. This stringent standard differentiates bad faith claims from typical car accident cases where the insurer is not directly involved.
He cited a case from 2008, where he and Mike Burridge tried a case together that illustrated the principles of bad faith. In this case, they were able to demonstrate that the insurance company had treated their insured terribly, withholding rightful payments and making them fight for their due. The jury awarded a substantial $130 million verdict, which included a $30 million punitive damage verdict. This outcome was justified as the insurance company had failed to act in good faith and fairly toward their insured, which is a legal requirement.
He stressed the importance of knowing the language and intricacies of insurance law, as many individuals may not be familiar with insurance terminology. He mentioned that early in their careers, they represented insurance companies, which provided them with valuable insights and expertise in navigating the complexities of insurance cases.
