27 Trial Lawyer • Spring 2023 the defendant assigns its rights to seek excess liability from the insurance company to the plaintiff. Following a properly executed agreement, the plaintiff has every right to pursue the insurance company for up to policy limits, and for the amount of any judgment exceeding limits. Although the amount of the stipulated judgment needs to be reasonable and justified, the insurance company faces significantly increased exposure to plaintiff. Final word Another example is instructive. A defendant faced excess exposure in a complex case involving multiple insurance companies. The demands to the defendant were millions of dollars higher than settlement authority provided by the insurance companies. One of the insurance companies caused significant challenges in that it would not authorize settlement authority commensurate with the policyholder’s exposure. As a result, the defendant and the remaining insurance companies engaged in discussions concerning steps necessary to put pressure on the recalcitrant insurance company. Chief among the steps was a discussion about whether a threat of a stipulated judgment and covenant not to execute might provide the right pressure to motivate the insurance company to step up to resolve the matter. While no one can force the insurance company to settle, an experienced insurance coverage attorney is able to lay out the extremely dangerous consequences if it doesn’t. A stipulated judgment and covenant not to execute may be just the right amount of pressure. Kyle Sturm handles commercial transactions and litigation, with an emphasis on insurance coverage. He is a partner with Foreman Sturm Thede LLP, 3519 NE 15th Ave., #489, Portland, OR 97212. He can be reached at kyle.sturm@foremansturm. com or 503-477-4693. Nick Thede represents individuals and businesses against their insurance companies, with a focus on disputes concerning residential and commercial property and liability policies. He a partner at Foreman Sturm & Thede LLP and can be reached at nick.thede@foremansturm.com or 503206-5824.
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