Interpretation of Insurance Contracts: Law and Strategy for Insurers and Policyholders.

Jeffrey W. Stampel Little Brown & Co., 34 Beacon St., Boston, MA 02108. 989 pp., $145. Reviewed by James C. Peterson

For those of you who slept through or intentionally missed law school classes on contracts and insurance law, have no fear. You now have a single-volume text that comprehensibly tackles unknown or forgotten insurance issues involving contract disputes, extracontractual damage claims, and the related field of bad-faith litigation.

Interpretation of Insurance Contracts is a first-rate text that should be on the shelves of all of those who care to wade into insurance litigation waters.

The book is more than a manual or handbook on black letter law. Practical practice pointers set forth throughout the book aid readers in integrating insurance contract law with the real world of insurance litigation disputes.

True to its prepublication press release, the book is easy to read and understand even if a reader's primary practice does not include many insurance disputes. Even so, the book is sophisticated enough that even seasoned litigators will find new and refreshing insights to expedite handling and resolving most insurance disputes.

Also true to prepublishing reports, Jeffrey Stampel, who is a professor of law at Brooklyn law School, exhibits an even-handed approach in his analysis of insurance contractual disputes for both plaintiff and defense counsel and offers strategic guidelines as well as caveats for members of both sides of the bar.

Following a substantial trip down memory lane in the opening chapters, Interpretation of Insurance Contracts spells out, in specific detail, the "do's and don'ts" of handling practical disputes that arise in everyday insurance litigation.

The author concludes with a substantial section entitled "Special Topics in Insurance Law" on some of the more cutting-edge issues now being litigated. These include "Coverage for Environmental Claims," "Coverage of CERCLA Response Costs and Other Government-Mandated Expenses," "Exclusions of Coverage for the Policyholder's `Own Worth' or `Owned Property,'" "ERISA and Insurance Coverage," "Coordination of Insurance Coverage," and "Reinsurance and Policy Interpretation."

One does not often find valuable practice pointers in what is almost a treatise on insurance law, but Stampel suggests some rather innovative approaches to various areas of insurance contract disputes. For example, at one point he discusses the viability, as well as the pitfalls, of tape recording conversations with insurance adjusters and attorneys and its possible effect on settlement and litigation. Practical advice indeed!

Although one could quibble with the author's interpretation of the breadth or extent of a particular state's position on selected areas of insurance law, the same can certainly be excused in light of the ever-changing and volatile landscape of insurance contract/bad-faith law in the 50 states.

If there is any fault with the text it would have to be its length. Nonetheless, due to the extensive summary of contents, copious footnotes, bibliography and table of cases, even the busiest practitioner can find with relative ease sections covering specific insurance disputes that are typically encountered.

A feature this reviewer found most valuable is the extensive footnotes and bibliography in virtually every section of the book. The text follows almost a universal format: a discussion of relevant black letter law; historical perspective; relevant terminology; and helpful suggestions, trial tips, and strategy. Often the author concludes with relevant opinions as to what the law should or should not be, with suggestions for members of both sides of the bar as to how their respective clients' objectives can be more readily achieved.

The extensive and global research that has gone into the publication of this book provides practitioners with invaluable insights into case law from other jurisdictions. This information can be reformulated and adapted to readers' own jurisdictions and used to refine, recreate, or overcome previous case law that prevented successful conclusions of these types of insurance disputes.

Trial lawyers handling any amount of insurance contract and insurance bad-faith litigation will find Interpretation of Insurance Contracts topical, timely, and thorough. It is a "must" addition to their law libraries.