A.W. Huss Company v. Continental Casualty Company

CUMMINGS, Chief Judge.

The appeal in this diversity case presents the question whether Wisconsin law recognizes a cause of action by the insured against the insurer for alleged bad faith in handling a third party claim where the insurer settled the claim within the insured’s policy coverage. We affirm the district court’s holding that Wisconsin law does not recognize such a bad faith cause of action.

I

Defendant-appellee Continental Casualty Company (Continental), an Illinois corporation, issued to plaintiff-appellant A.W. Huss Company (Huss), a Wisconsin corporation, two insurance policies: (1)…