Instant Replay Sports, Inc., et al v. Allstate Insurance Company

(Client: Allstate Insurance Company)

The Firm won a victory in the Louisiana Supreme Court, saving the client, a commercial general liability insurer, a substantial amount. The decision held that an insurer did not act in bad faith by issuing settlement checks to its insured that included third-party lienholders, notwithstanding that a preliminary settlement agreement between the parties specified amounts to be paid to specific payees, without including the lienholders. Reversing the appellate court decision, the Supreme Court found that the insurer did not knowingly timely fail to pay the settlement in violation of the bad faith statute because the insurer had not only issued checks for the proper amounts but had changed the payees and other language on the checks both to protect the third-party lienholder and at the request of the insureds. Under these circumstances, the Court ruled, the insurer had not acted in bad faith and could not be held liable for penalties. Judy Barrasso and Andrea Mahady Price, along with other outside counsel, represented the insurer.