"Whether a surety has settled a claim in good faith or not, of course, depends on the particular facts of the case." Download Auto-Owners Insurance Co. v. Southeast Floating Docks, Inc. (11th Cir. Opinion Filed June 16, 2009).
The implications of this holding on the law of Insurer Bad Faith are pretty clear: Whenever a settlement is even remotely suspicious, and is used as the basis for a claim of Bad Faith against an Insurance Company which is why the underlying claim was settled as it was, that settlement is potentially subject to the legal standards imposed under the holding in this new Eleventh Circuit decision.
A post explaining and addressing this new decision is on Insurance Claims and Issues Web Log at www.insuranceclaimsissues.typepad.com.
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