"Insurance companies in general are reluctant to pay – we know that," he noted.
When insurers become unreasonably obstructionist, it creates difficulties for more than just the plaintiff. "It becomes difficult on the defense lawyer," said Reardon, "and it also becomes difficult on mediators and judges in trying to settle cases, because of the multiple parties involved in contributing to the settlement."
Reardon said the consequences of delay can be costly for insurers. "Ultimately, this will result in a bad faith lawsuit, which is essentially where they're headed right now. A successful bad faith claim means punitive damages, and a violation of CUTPA. It can be risky business for the insurance company if they want to draw the line in the sand, and refuse to pay by imposing unreasonable prerequisites on the insured." •
Subscribe to The Connecticut Law Tribune
