April 22, 2014

Important Federal Court Decision on Bad Faith Case Ruled in ProSight’s Favor

As a company that provides insurance protection to businesses across many industries, our reputation is based on integrity. Simply put, ProSight Specialty Insurance prides itself on making decisions that not only help our policyholders, but also are ethical and above reproach. So needless to say, we were concerned when we were sued by an individual who claimed that we had not fairly compensated her in the settlement of her lawsuit.

In a decision on a summary judgment motion recently handed down in ProSight’s favor in the case known as Redding v. ProSight Specialty Management Company, it was revealed that the suit was part of an elaborate scheme to drive a larger recovery than was available by manipulating a settlement behind our backs. When the facts came to light, not only did we win the case, but the judge turned the table on the plaintiffs’ attorneys and ordered that they individually, not their firms or their clients, pay more than $100,000 to ProSight. These sanctions were ordered due to their abuse of the discovery process, withholding evidence and retaliatory motions. Ordering lawyers to pay this kind of penalty out of their own pockets is rare, and it highlights the severe impropriety of their actions.

This is good news for us financially and legally, but even more importantly the court’s lengthy opinion reaffirmed that we acted with integrity throughout our handling of the claim and our defense of the bad faith lawsuit.  In his opinion the federal court judge complimented ProSight for the way they defended their policyholder and wrote that “all of the evidence submitted to the court… indicates that [ProSight] conducted itself in good faith.”  ProSight acted in the utmost of good faithto its policyholder and the case “turned out to be a fishing expedition that yielded no catch.”