9th Circ. Affirms $14M Allstate Bad Faith Verdict

Law360, Los Angeles (June 15, 2017, 7:35 PM EDT) -- The Ninth Circuit on Thursday affirmed a $14 million bad faith judgment against Allstate, finding there was sufficient evidence to conclude the insurer could and should have settled the underlying motorcycle collision case.

In a nine-page unpublished opinion, a three-judge panel rejected Allstate's appeal of a 2012 jury verdict that the insurer acted in bad faith when it rejected Carlos Madrigal's offer to settle his claims against policyholders Anna and Richard Tang for policy limits.

In the underlying case, Madrigal had sued the Tangs after a July 2009 collision between his motorcycle and a car driven by Richard Tang left Madrigal...

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