Bad Faith Attempted Set Up Fails

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Nya Yanitza Montanez appealed a grant of summary judgment to the insurer on her bad faith claim. The son of Defendant’s insured caused an automobile accident involving two other cars and resulting in the death of Plaintiff’s daughter and the injury of four other individuals. Although Defendant made the entire policy limits available to the various claimants, Plaintiff rebuffed Defendant’s efforts.

ZALMA OPINION

When an insurer is faced with multiple claims of injuries from a single accident and policy limits inadequate to compensate all of the plaintiffs it is faced with an important and difficult situation for itself and its insured. Liberty did what it needed to do: it conducted a thorough investigation quickly determining the inadequacy of the available limits offered it to all of the injured and sought alternative dispute resolution to work out distribution of the available funds.  Since there was no bad faith. In some states, leaving an insured with no available insurance could be considered bad faith but was not an issue in this case.