Open Access. Powered by Scholars. Published by Universities.®
- Discipline
Articles 1 - 2 of 2
Full-Text Articles in Law
Extra-Contractual Liability In The Restatement Of The Law, Liability Insurance: Breach Of The Duty To Settle Or Bad Faith?, Jeffrey E. Thomas
Extra-Contractual Liability In The Restatement Of The Law, Liability Insurance: Breach Of The Duty To Settle Or Bad Faith?, Jeffrey E. Thomas
Faculty Works
This paper focuses on the Restatement’s treatment of an insurer’s duty to settle and the duty of an insurer to act in good faith in handling liability claims. The duty to settle is framed as an objective “duty to the insured to make reasonable settlement decisions.” At the same time, however, a separate claim is retained for an insurer’s “bad faith” breach of its duties (including the duty to settle). Further, a subjective element is adopted for the bad faith standard. To be liable for “bad faith,” an insurer must act “without a reasonable basis for its conduct” and must …
Allen V. Bryers: The Missouri Supreme Court's 2016 Decision Adds Clarity (And Confusion) To Insurers' Duty And Right To Defend Their Insureds, Jeffrey E. Thomas
Allen V. Bryers: The Missouri Supreme Court's 2016 Decision Adds Clarity (And Confusion) To Insurers' Duty And Right To Defend Their Insureds, Jeffrey E. Thomas
Faculty Works
In a previous paper, I suggested that the Missouri Supreme Court had adopted a forfeiture penalty for insurers that breached the duty to defend. This paper revises that position based on the December 2016 Missouri Supreme Court decision of Allen v. Bryers in which the court held that to recover damages beyond the applicable liability insurance policy limits, the insured (or an assignee) would have to demonstrate the insurer had acted in bad faith. However, the court confirmed a forfeiture approach up to the liability insurance policy limits. Where an insurer breaches its the duty to defend in a liability …