Insurance Company's Bad Faith Refusal To Settle A Claim [2010-01-05]
Donna Russo
Insurance Company’s Bad Faith Refusal To Settle A Claim - On January 5, 2010, the Appellate Division affirmed the trial court’s ruling that Rutgers Casualty Ins. Co. was guilty of bad faith for its refusal to settle a claim prior to trial and was liable to pay the excess verdict and attorney’s fees.. (Riehs v. Rutgers Casualty Insurance Company, Docket No. A-1171-08T3). The jury verdict was $186,000 and the policy limit was $100,000 . The plaintiff would have settled for $35,000. The insurance company refused to offer more than $30,000. The court found that the insurance company was liable for the excess verdict because it never determined the settlement value of the case, never advised its insured of the possibility of an excess verdict and did not give the insured the opportunity to contribute to the settlement.