Georgia High Court Ruling Curbs 'Gotcha' Bad Faith Cases

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March 14, 2019

Earlier this week, Georgia’s Supreme Court ruled that an insurer can’t be sued for failing to settle a claim against its policyholder within policy limits unless the insurer received a valid settlement offer, Law360 reports

The decision provides important clarity on the prerequisites for filing a bad faith failure-to-settle action in Georgia, following a series of mixed federal and state court decisions that have created significant ambiguity around the issue since the Supreme Court’s 1992 ruling in Southern General v. Holt. According to J. Stephen Berry, general counsel at Builders Insurance Group, the Court’s ruling should help prevent Georgia from becoming “the next Florida—a state where bad faith liability cases ha[ve] gotten out of hand.”

03/14/2019