La. Justices Apply 10-Year Limit To Driver's Bad Faith Claim

By Jeff Sistrunk (October 23, 2019, 7:43 PM EDT) -- GoAuto Insurance Co. must face a suit alleging it acted in bad faith when it failed to settle a claim against a policyholder over a 2010 car crash, after the Louisiana Supreme Court ruled Tuesday that such bad faith actions are subject to a 10-year rather than a one-year deadline.

The Louisiana high court spurned the insurance company's efforts to escape the bad faith suit brought by Beverly Smith, who was injured in a collision caused by GoAuto's policyholder, Darlene Shelmire.

Shelmire had assigned Smith the right to pursue a bad faith action against GoAuto after a judge held Shelmire liable...

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