Majorowicz v. Allied Mutual Insurance

This is a bad faith case. Allied Mutual Insurance Company (Allied) appeals a judgment based upon a jury verdict finding Allied acted in bad faith by handling a personal injury claim against its insured, Artha Majorowicz, that resulted in a $121,213.10 judgment against Majorowicz in excess of Allied's $100,000 policy limits. Majorowicz's suit accuses Allied of failing to properly investigate, evaluate, negotiate and communicate with its insured.

Allied argues that the trial court erred by instructing the jury that Allied was responsible for the conduct of a private attorney it retained to…