Calif. Court Sides With Insurers In Bad Faith Case

Law360, San Diego (March 14, 2012, 9:33 PM EDT) -- A California appeals court held Tuesday that an insurer only has a duty to accept a reasonable settlement offer for a covered claim, upholding a win for two insurers accused of refusing to settle claims in an underlying dispute over a drunken-driving incident.

Plaintiff Donald DeWitt had failed to establish that Monterey Insurance Co. and California Capital Insurance Co. were obligated to indemnify the claims brought against him in the underlying case, the three-judge panel ruled.

The panel upheld a trial court's judgment declining to give...
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