IT’S more OF A GUIDELINE THAN A CODE: WASHINGTON FEDERAL COURT DISMISSES BAD FAITH CLAIMS AGAINST INSURER THAT ENFORCED ITS LITIGATION MANAGEMENT GUIDELINES AGAINST DEFENSE COUNSEL

On March 26, 2016, Judge Barbara J. Rothstein for the United States District Court for the Western District of Washington entered summary judgment for an insurer on the insured’s claims of bad faith and violation of Washington’s Insurance Fair Conduct Act (IFCA) and

Consumer Protection Act (CPA). In Evanston Ins. Co. v. Clartre, Inc., 2016 U.S. DIST. LEXIS 37248, Evanston agreed to provide a defense to the insured under a reservation of rights and agreed to allow defense counsel chosen by the insured to continue to represent the insured in the underlying lawsuit. However, Evanston insisted that the insured’s defense counsel agree to comply with Evanston’s litigation management guidelines. The insured agreed to follow these guidelines.

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