Fireman's Fund Insurance v. Continental Insurance

MURPHY, Chief Judge.

Fireman’s Fund Insurance Company, the excess insurance carrier for Publication Press, sued Glen Falls Insurance Company,1 Publication Press’ primary carrier, for neg*317ligent and bad faith failure to settle a claim within the primary policy limits. The trial court dismissed this action for failure to state a claim under Maryland law. We must determine whether Maryland recognizes such a cause of action.

I

Publication Press had a comprehensive general liability insurance policy with Glen Falls Insurance Company with a limit of $500,000 per occurrence. In addition, Publication…