LITIGATION AND PREVENTION OF INSURER BAD FAITH. By Dennis J. Wall. Colorado Springs. Shepard’s/McGraw Hill, 1985. Pp. xix, 536. $80.00. In all contracts, including insurance contracts, there is an implied promise of good faith and fair dealing. An insurer’s breach of such a requirement can lead to insurer’s liability beyond and regardless of policy limits. The author begins his work by briefly discussing the history and requirements of good faith. Most of the book, however, is divided into an analysis of the treatment of both third party and first party claims against the carrier. Defense attorneys will be happy to see chapters devoted to responsibilities of the insured, along with an indepth discussion of the insurer’s defenses. Interestingly, the author is convinced that noncoverage under the terms of the policy is an affirmative defense which therefore must be set forth in the pleadings. Plaintiff’s bar will find sections outlining valuable swords for the insured such as waiver and estoppel, the adequacy of the insurer’s reservation of rights, and the scope of the insurer’s duty to defend the insured. The book contains a more sophisticated chapter dealing with the relation between primary and excess insurers, along with a discussion of the important principles of indemnification and contribution. Two chapters involve discovery techniques. However, the author has unfortunately not prepared a set of pattern interrogatories which would have been a useful practice device. Finally, after a section discussing damages and attorney fees, Mr. Wall concludes with an appendix containing sample demand letters and pleadings, a table of cases, and a well-organized index. The book is detailed and thorough, with extensive footnoting. It should provide valuable background to the practitioner, enabling him to understand this growing area of insurance litigation.
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