US Fidelity & Guaranty Company v. Biddy Lumber Company

Bell, Presiding Judge.

1. . “The recovery provided in the Civil Code, § 2549 [Code Ann. § 56-1206] is a penalty. Penalties and forfeitures are not favored. The right-to such.recovery must be clearly shown.” Love v. National Liberty Ins. Co., 157 Ga. 259, 271 (121 SE 648). Since the provision for damages and attorney’s fees is in the nature of a penalty,- it must be strictly construed, and in order for these items of recovery to be authorized, it must first appear that the company acted in bad faith in refusing to pay the claim. As used in Code Ann. § 56-1206, the term “bad faith” means any…