Scott S. Thomas

Convinced an Insurance Carrier to Provide Our Client with Independent Counsel in an Employment and Business Dispute, Resulting in Securing Reimbursement for Over $1 Million in Defense Costs

Convinced an insurance carrier to provide our client, a large public-works contractor, with independent counsel in an employment and business dispute involving a former company executive. This settlement had the effect of securing reimbursement for over $1 Million dollars in defense costs that our client had previously spent defending the matter through the defense counsel of its choosing.

$13 Million Recovered From Direct and Additional-Insured Carriers for a Major Homebuilder in Reimbursement of Costs Incurred to Defend and Settle a High-Exposure Construction Defect Lawsuit

Recovered more than $13 Million from a group of direct and additional-insured carriers for a major homebuilder in reimbursement of costs incurred to defend and settle a high-exposure construction defect lawsuit and, in the process, made new law regarding what constitutes “property damage” caused by an “occurrence” under a CGL policy, limiting the “fair debatability” doctrine as a bad faith defense, and confirming the admissibility of an insurer’s handling of other claims as evidence of its bad faith.

Payne & Fears LLP Obtains Important Victory for Arizona Policyholders

In a victory not only for homebuilders but for all policyholders, the Arizona Court of Appeals recently rejected an attempt by several liability insurers to dramatically expand Arizona's "fair debatability" defense to policyholder bad faith claims. Lennar Corp. v. Transamerica Ins. Co., No. 1 CA-CV 10-0141 (April 14, 2011) ("Lennar II"). Our client, Lennar, a Fortune 500 homebuilder, sued several insurers for breach of contract and bad faith after they denied coverage for a multi-plaintiff construction defect lawsuit. After several years of litigation, the trial court summarily...