Most car accident lawsuits in Georgia are handled by the negligent driver’s insurance company. If an insurer refuses to settle a personal injury claim “in bad faith,” said insurer may be liable for any judgment against the insured in excess of the policy’s normal limits. In other words, the insurance company may not place its own interests ahead of those of its policyholders by dragging its feet to avoid settling an apparently valid personal injury claim.
Linthicum v. Mendakota Insurance Company
But an insurance company’s obligation is only to act reasonably when attempting to negotiate a settlement. It is not necessarily liable just because no settlement is reached. A recent decision by a federal judge in Savannah illustrates this point.