Michael Melendez and Rebeka Shapiro | Cozen O’Connor California law generally requires that an insurer reject a reasonable settlement demand within the policy limits before it can be liable for a bad faith failure to settle. See Samson v. Transamerica Ins. Co., 30 Cal.3d 220, 237 (1981). But a recent California Court of Appeal (4th Dist.)… Continue reading Can a Settlement Demand Above Policy Limits Fall within Limits? A Calif. Appellate Court Says Yes
Tag: Bad Faith Failure to Settle
An Insurer Is Not Subject to Strict Liability for the Failure to Accept a Reasonable Settlement
Kathryn Ashton | Clyde & Co. In March 2021, an appellate court decision clarified what the law has always been in California; that to find an insurer liable for bad faith, the insured (or its assignee or a judgment creditor) must plead and prove the insurer acted unreasonably or without proper cause. California’s standardized jury… Continue reading An Insurer Is Not Subject to Strict Liability for the Failure to Accept a Reasonable Settlement
Keeping the Cap On the Policy: Unreasonable Conduct Is a Necessary Element of a “Bad Faith Failure to Settle” Claim
Jared K. LeBeau | Sheppard Mullin Pinto v. Farmers Ins. Exch., ___ Cal. App. 5th ___ (2021) Over the past several years, the insurance industry in California has been plagued by waves of “bad faith failure to settle” claims. These claims arise out of a variety of circumstances and can take many forms, but at… Continue reading Keeping the Cap On the Policy: Unreasonable Conduct Is a Necessary Element of a “Bad Faith Failure to Settle” Claim