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Insurance

Apr. 2, 2020

Can you sue insurance companies for emotional-distress damages?

The COVID-19 pandemic may give rise to a variety of novel insurance coverage disputes, and some of those disputes may include claims by policyholders for emotional distress due to a bad-faith claim denial.

Richard J. Doren

Gibson, Dunn & Crutcher LLP

333 South Grand Avenue
Los Angeles , CA 90071

Phone: (213) 229-7000

Email: rdoren@gibsondunn.com

Univ of San Diego SOL; San Diego CA

Michael Holecek

Gibson Dunn & Crutcher LLP

The COVID-19 pandemic may give rise to a variety of novel insurance coverage disputes, and some of those disputes may include claims by policyholders for emotional distress due to a bad-faith claim denial. In California, however, the right to emotional-distress damages in the context of an insurance bad-faith claim is hotly contested. Two older decisions from the California Court of Appeal created a split in the law — with one court ruling that a plaintiff may recover...

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