Extra-contractual claims, commonly referred to as “bad faith” claims, seek damages separate and apart from a claim under an insurance policy.  Rather, these claims seek damages for the insurer’s alleged breach of duties owed separate and apart from the duty to indemnify, including the duty to defend and the implied covenant of good faith and fair dealing.

Bad faith claims can arise in the first-party context or in the third-party context.  In the first-party context, the insured claims that the insurer improperly denied benefits to which the insured is entitled, and that the insurer had no reasonable basis for its conduct.  In the third-party context, the insured claims that the insurer acted improperly in defending or settling a claim asserted against the insured by a third party, thus exposing the insured to personal liability above and beyond his or her policy limits.  Bad faith claims are complex, contentious and typically involve claims for attorneys’ fees and punitive damages.

MTFN’s bad faith team, led by Attorney Mark Malloy, is retained to provide insurers in Wisconsin and nationwide with an accurate and quality assessment of their bad faith exposure.  Many times, our team is brought in later in the litigation to quickly step in to assess, and if need be, take the case to trial.  Whether it is a first-party claim or a third-party claim, we have achieved outstanding results for our clients in all types of fact scenarios.