Perspective
Oct. 30, 2013
Clearing up murky waters: insurers' duty to settle
Recent decisions left uncertainty as to the extent of an insurer's duty to settle to avoid bad faith liability, until now. By Robert J. McKennon
One of the hottest issues in California insurance law has been whether an insurer can breach the duty to settle where liability is reasonably clear in the absence of a demonstrated interest in settlement or a within-policy-limits settlement demand, thus giving rise to an insurer's liability for an excess judgment. This issue arose in the aftermath of the 9th U.S. Circuit Court of Appeals' controversial decision in Du v. Allstate I...
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