A New Twist on Remedies: Judicial Assignment of Bad Faith Claims

Abstract

A NEW TWIST ON REMEDIES: JUDICIAL ASSIGNMENT OF BAD FAITH CLAIMSLegal remedy is the means by which a court of law enforces a right. The theory of legal remedies can take many different forms in order to ensure that the right has value. When a party obtains a judgment, that party should be entitled to pursue a method to collect that judgment. The right to satisfaction through assignment is a long held legal concept. Judicial involuntary assignment of bad faith claims provides a needed remedy to the aggrieved third party who has suffered first at the hands of the tortfeasor, and second, by enduring a trial and obtaining a judgment that is uncollectable against the first party defendant. Permitting the third party plaintiff to seek satisfaction of a judgment through assignment does not offend principles of equity and justice. Rather, allowing such an action furthers these goals. There are several steps along the way for a third party to pursue a judicial assignment however. This article discusses bad faith claims generally, the concept of assignment, and idea of permitting judicial assignment of claims pursuant to various states’ debtor/creditor statutes, and concluding that involuntary judicial assignment of bad faith claims is an important tool available to injured third parties in civil litigation.