Tom Baker Posts

Plain Meaning and Ambiguous Terms

Since the 2017 Annual Meeting, many changes have been made to the Liability Insurance project draft. Sections 3 and 4, The Plain-Meaning Rule and Ambiguous Terms, have both been significantly revised to reflect the decision to adopt a plain meaning rule.

In Defense of the Restatement of Liability Insurance Law

In a recent essay funded by the insurance industry, Yale Law Professor George Priest launched a strident critique of the Restatement project, arguing that the rules adopted in the Restatement (a) are radically contrary to existing case law, (b) have a naïve “pro-policyholder” bias that ignores basic economic insights regarding how insurance works, and (c) will, as a result of (a) and (b), lead to increases in liability insurance premiums and disruption in coverage, to the detriment of individuals and firms that need liability insurance. This essay argues that each of these claims is false.

Duty to Make Reasonable Settlement Decisions

The project specifically uses the phrase “duty to make reasonable settlement decisions,” rather than “duty to settle.” The Reporters use this phrase to emphasize that “duty to settle” is not entirely accurate; rather, there is a duty to make reasonable decisions in relation to settlement.