EXPERT WITNESSES IN COMMON-LAW BAD-FAITH ACTIONS
The crux of the typical common-law bad-faith lawsuit turns on the reasonableness of the insurer’s decision to decline an opportunity to settle within policy limits. In some cases expert testimony regarding the insurance company’s actions could be helpful for the trier of fact in determining whether the insurer behaved as an “ordinarily prudent insurer” in determining whether to settle a lawsuit. Although questions as to the appropriateness of a particular expert would be a fact-intensive analysis tailored to a specific case, a few reported cases offer some guidance.
The Daubert Standard