"The result in this case is harsh, but it is improperly so." (Lucero, J., dissenting, with emphasis in original), in Download Berry & Murphy, P.C. v. Carolina Casualty Insurance Co. (10th Cir. Opinion Filed November 12, 2009), at *12.
A sharply divided Panel of the Federal Tenth Circuit Court of Appeals decided an interesting question of Colorado Insurance Law apparently argued by lawyers from Illinois regarding Coverage for an underlying legal malpractice claim filed in Colorado. That is not what draws attention for this post, however.
The Panel majority also determined that since there was no Coverage under its holding of first impression under Colorado State law, then there was no viable Bad Faith Claim for wrongful refusal to defend and indemnify the underlying claim, either. Download Berry & Murphy, P.C. v. Carolina Casualty Insurance Co. (10th Cir. Opinion Filed November 12, 2009), at *11.
No Coverage, No Bad Faith. This is the clear majority view, and there is no division about that, sharp or otherwise.
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