In its amicus brief, United Policyholders and the Colorado Trial Lawyers Association urge the Colorado Supreme Court to reject the judicially created “suspension rule” announced in Bucholtz, under which an insurer’s duty to negotiate, settle, or pay claims is purportedly suspended once litigation begins. The amici argue that the rule has no basis in Colorado Supreme Court precedent, statutory law, insurance policy language, or the law of any other jurisdiction, and that it improperly relieves insurers of their continuing contractual and good-faith obligations after suit is filed. The brief further contends that post-litigation claim file materials should not be categorically shielded from discovery but instead evaluated under ordinary discovery principles of relevance and privilege, allowing courts to assess discoverability on a case-by-case basis rather than through a blanket immunity for insurers.
James Berns v. State Farm Mutual Automobile Insurance Company
Year
2026
Court
Colorado Supreme Court
Case Number
26SA86
Issue
- Discoverability of Post-Litigation Claim Files
- Insurance Bad Faith
- Post-Litigation Duties of Good Faith
State
- Colorado