do third parties have cause of action against the defendants insurance company?
It is possible in Massachusetts, where I practice. A plaintiff can sue a defendant’s insurer directly for engaging in unfair claims settlement practices or other kinds of misconduct. The Mass. statute is c. 176D. Such claims are typically stayed until the conclusion of the underlying plaintiff v. defendant case, however, since the insurer’s conduct with respect to settlement practices will continue to play out during the litigation. It is a difficult claim to prove, but awards attorneys’ fees and the possibility of multiple damages to those who succeed. A Washington attorney can tell you if a similar statute exists in your state. Good luck! Matt DISCLAIMER: I am an attorney licensed to practice in Massachusetts, and only in Massachusetts. This post is intended only as a general discussion of legal principles. This post is not intended to solicit or provide legal services, nor is it intended to create and attorney-client relationship. You should not rely on any information posted on thi
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