Scott Ostericher

Partner •
Direct Dial: 312.238.9307
Mobile: 312.965.3833

Scott concentrates his practice on matters relating to insurance and reinsurance dispute resolution and counseling. This includes complex insurance coverage and bad faith claims, internal investigations, commercial contract disputes, and business tort claims. He has over 21 years of experience providing insurers and reinsurers strategic guidance and representation in negotiations, mediations, arbitrations, and litigations in state and federal courts throughout the United States. These matters have involved underlying claims such as environmental, financial, construction, sexual assault, products liability, employment-related claims, property losses, as well as catastrophic losses. In addition to litigating such cases, Scott counsels insurers on policy language.

He is a former partner at Locke Lord LLP, an assistant general counsel at General Re Corporation and Vice President and Claims Counsel for General Star and Genesis.

He attended Western Michigan University for his undergraduate degree and graduated magna cum laude from The John Marshall Law School in 1995.

Insurance Coverage and Bad Faith Litigation

  • Obtained summary judgment and dismissal with prejudice in case involving claims for contract benefits arising under an occupational accident policy and bad faith claims handling. Plaintiff attempted to pierce several corporate veils and had demanded $20 million to settle the matter prior to the decision.
  • Evaluated and devised settlement strategy to avoid bad faith charges and obtained a significant discount on a $30 million judgment awarded to a double amputee in a case against an insured ski resort.
  • Favorable settlement (less than $1 million) in case involving gas distribution company’s claims of $20 million in bad faith damages based on alleged unreasonable settlement offers and claims handling delays.
  • Favorable settlement of Oklahoma bad faith case involving owner of automobile dealership rendered paraplegic in fall from trailer attached to company vehicle. Owner alleged the insurer acted in bad faith when it refused to separately “stack” $1 million limits for all 38 vehicles insured under the dealership’s policy.
  • Obtained unanimous arbitration judgment involving large-loss deductible workers’ compensation program, recovering outstanding amounts owed to the insurer and defeating counter-claims for bad faith claims handling. 
  • Favorable settlement of Washington state bad faith claim involving insured physician’s assignment of bad faith claims following his consenting to an arbitration award.
  • Favorable settlement of California bad faith claim asserted by insured that contributed its own sums above the insurer’s policy limits to settle catastrophic injury and death claims by multiple claimants who had submitted time-limited demands exceeding the total policy limits.
  • Received a Nonsuit/Directed Verdict in a jury trial pending in Los Angeles Superior Court on behalf of an insurer based on a claim of intention interference with contractual relations arising from the payment of a settlement in a bad faith lawsuit.
  • Obtained summary judgment ruling that an insurer had no duty to defend or indemnify an insured lead smelter based on a total pollution exclusion, effectively defeating the insured’s attempt to expand a state appellate court-created exception to the exclusion for “commercial valuable products.” The summary judgment was affirmed on appeal.
  • Obtained favorable summary judgment ruling that an insurer was not liable for substantial pre-tender defense costs associated with class action claims for exposure to lead pollution.
  • Obtain summary judgment in Illinois on the number of occurrences in a coverage dispute involving mercury contamination, where the court held that each spill constituted a separate occurrence subject to a self-insured retention, resulting in no liability to the insurer.
  • Obtained summary judgment on pollution exclusion and on time-the-risk allocation in favor of insurers in coverage action involving TCE contamination at a large Arizona manufacturing facility. Successfully defended that judgment on appeal.
  • Obtained summary judgment in coverage action involving environmental damage from manufactured gas plant (MGP) operations based on trigger of coverage.

 Commercial Litigation

  • Prosecution of temporary restraining order and permanent injunctive relief on behalf of insurance client, obtaining an order to show cause against an MGA and favorable settlement agreement which required the MGA to cease issuing our client's workers' compensation policies in various states.
  • Representation of lead London reinsurer in breach of contract and fiduciary duty case concerning purported untimely payment of premium under premium payment warranty. Case favorably resolved after summary judgment was entered in favor of our clients.
  • Lead role in assisting with an internal investigation relating to complex "financial" reinsurance transactions (finite) that involved the U.S. Securities Exchange Commission, the U.S. Department of Justice, numerous states' attorneys general, and international regulators.
  • Trial of alleged consumer fraud act violations against travel agency after successfully obtaining dismissal of all putative class action allegations.
  • Representation of shareholder in the dissolution of a closely held limited liability company, including petitions for receivership and accounting.
  • Representation of corporate client in fraud and negligent misrepresentation claims resulting from failed negotiations to acquire metals business.