First Filed Rule

New York, New York: These Vagabond Shoes Are Longing to Sue…

Policyholders hope and expect that their insurance companies will work with them to resolve claims promptly and fairly. We are constantly being told that our insurers, like good neighbors, will be there, and that the insurer’s umbrella will protect us. Sometimes, however, the good neighbor will not welcome us, and the umbrella may spring a leak. These situations sometimes lead to litigation, and then the fight becomes where to file suit.

Problems often arise when the claim is large enough, or involves a type of claim, that the insurance company will not want to pay. Even when the insurance company will not pay the claim after a lengthy period of negotiation, many policyholders still prefer not to initiate a lawsuit, especially since they cannot believe that their trusted insurer will not eventually cover the loss. Insurance companies, however, are not always as reluctant to bring suit, especially when it will further their aims. Moreover, when they choose to commence an action, insurance companies typically bring suit in a state that tends to favor insurance companies in litigation, even if that state only has a minimal connection to the dispute. READ MORE