Perspective
Jul. 27, 2012
9th Circuit affirms insurers obligated to initiate settlement discussions
Insurers often contend that they have a duty to accept reasonable settlement demands, but no duty to propose settlement terms. By Rene Siemens and Nathaniel Smith of Pillsbury Winthrop Shaw Pittman LLP
Two basic principles provide the backdrop to a recent 9th U.S. Circuit Court of Appeals decision regarding an insurer's good faith obligations in settling cases. First, an overwhelming majority of cases resolve through settlement. Second, the implied covenant of good faith and fair dealing obligates an insurer to act reasonably toward its insured in settling third party claims. Despite these principles, insurers frequently ...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In