CBIA'S KNEE-JERK REACTION

CBIA CALLED ON CARPET FOR KNEE-JERK REACTION

In today’s edition of the “Hartford Business Journal” the Connecticut Business and Industry Association was called on the carpet for its knee-jerk reaction before the legislature to Senate Bill 1244, an act requiring disclosure of insurance policy limits.
I blogged about this subject on March 5.

In the “Journal’s” timely piece, it is noted that CBIA’ reaction to the mandatory disclosure bill was not well thought out nor was the testimony of CBIA staff attorney Kevin Hennessy. The reality is that disclosure of policy limits has nothing to do with the amount of money a particular claimant pursues. Nor is it even a target for a lawyer. The information does enable an attorney to make important informed decisions about how to proceed with a case and disclosure of limited coverage will likely mean no lawsuit and an early settlement in appropriate cases. In other cases, the information is necessary to determine whether and to what extent an underinsured motorist case should be brought. Still in other cases, the amount of coverage may determine the number and type of defendants that may be necessary in a particular case.

Notably, the “Journal’s” hypothesis about cynics believing that injured people will go unrepresented if there is timely disclosure of policy limits is nothing more than speculation. We would certainly have at least anecdotal evidence to suggest that cases were being dropped like “hot potatoes” after suit was commenced and defendants were forced to comply with mandatory disclosure of policy limits consistent with the Rules of Practice.

The “Journal” points out that Carl Anderson, President of the Connecticut Trial Lawyers Association is probably right when he asserts that mandatory disclosure of policy limits will probably lead to less litigation and not more. That view is based upon experience in the litigation trenches. It is well considered and not a “knee-jerk” claim. It is based upon a practical analysis. It should make the legislature concerned about the extent to which other “information” fed to it by the CBIA is similarly “knee-jerk” and wanting for an empirical or at least a practical basis.

Stewart M. Casper
Casper & de Toledo LLC
1458 Bedford St.
Stamford, CT 06905
Tel. 203-325-8600
Fax 203-323-5970
www.casperdetoledo.com