Discovery issues continue to burden the trial courts in post-Koken auto accident lawsuits where uninsured and underinsured motorist breach of contract claims are combined with bad-faith claims. Despite the high burden of proof attendant with showing bad faith, plaintiffs often include such claims as a “hammer” in an effort to pressure on the UM/UIM carrier to settle the underlying claims, only to then drop the bad-faith claim when the UM/UIM claim is settled. Defendant insurance companies typically strike back by hiring additional big-city defense counsel to fight bad-faith discovery efforts at all costs.

In such cases, the courts are often presented with a motion filed by the defendant insurance company seeking to sever the UM/UIM claims and bad-faith claims into two separate matters. These defense motions are typically combined with a request for a stay of any and all discovery on the bad-faith claims until a settlement or verdict on the separate UM/UIM claim is reached.

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