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Supreme Court Victory in Bad Faith Case

June 1, 2009

Dave Root and Cheryl Shaw won a unanimous decision in the Georgia Supreme Court on behalf of an insurer accused of bad faith failure to contribute to a settlement. The insured was sued for wrongful death and its carrier refused to pay as much as the insured wanted it to pay at mediation. The carrier offered $200,000, but would not offer more, citing what it believed were viable liability defenses of the insured. The insured thus contributed its own funds to the settlement, and sought to recover approximately $750,000 from its carrier on a bad faith theory. The Supreme Court held that an excess judgment was a prerequisite to the claim, and denied the insured’s claim. Trinity Outdoor, LLC v. Central Mutual Insurance Company, 204 WL 5026733 (2009).

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For informational purposes only. Past success does not indicate the likelihood of success in future cases.