Calif. Court Releases Insurers From Strict Duty To Settle

Law360, New York (October 22, 2013, 8:16 PM ET) -- A California appeals court recently held that insurers generally don't have to launch settlement discussions with those injured by their policyholders in high-stakes cases, freeing insurers from the greater bad-faith liability they feared following a controversial — and later amended — Ninth Circuit opinion.

The court's Oct. 7 decision in Paul Reid v. Mercury Insurance Co. put to bed confusion that was stirred up by the Ninth Circuit's ruling in Du v. Allstate Insurance Co., which said that California insurers must proactively work toward a settlement...
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