Civil Litigation,
Insurance
Aug. 26, 2016
Settlement offers might not preclude bad faith
A recent Court of Appeal decision confirms that a timely policy limits settlement offer does not automatically insulate an insurer from bad faith liability.
Michael S. Gehrt
Partner
Pasich LLP
Email: mgehrt@pasichllp.com
Michael represents insureds in complex insurance coverage matters.
The California Court of Appeal's decision last week in Barickman v. Mercury Casualty Co., 2016 DJDAR 8503 (Aug. 15, 2016), once again confirms the breadth of an insurer's duty to make all reasonable efforts to settle a third party's lawsuit against its insured.
It is well established that, under California law, the implied covenant of good faith and fair dealing requires liability insurers to accept reasonable settlement demands within policy limits. $95
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