Mid-America Bank & Trust Co. v. Commercial Union Insurance

This is an appeal of a verdict against an insurance company in a case brought for negligence and for bad faith in refusing to settle a claim within the policy limits.

A truck hit a 13-year-old boy; he suffered brain damage. The truck was insured by Commercial Union under a policy that had limits of $50,000 per person and $100,000 per occurrence. Plaintiff’s attorney sent a letter offering to settle for the policy limits. The offer remained open but was never accepted.

Commercial Union hired third-party defendant as its lawyer. On the advice of Commercial Union, and because of the possibility of…