7th Circ. Revives Good Faith Suit Against Insurer

Law360, New York (January 14, 2011, 3:56 PM EST) -- The Seventh Circuit has revived accusations by R.C. Wegman Construction Co. that Admiral Insurance Co. violated a duty of good faith by failing to inform Wegman that its policy limits could fall short in covering damages from a worker injury suit.

In an opinion issued Friday, a three-judge panel in the U.S. Court of Appeals for the Seventh Circuit reversed the dismissal of the suit, rejecting a lower court's ruling that Wegman failed to state claim.

Considering the facts of Wegman's complaint as true for the...
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