Maine Bonding & Casualty Co. v. Centennial Insurance

Plaintiff is the excess liability insurer and defendant the primary insurer for Great Balls of Fire, Inc., whose negligence caused fire damage to the property and business of Gene Hamilton. Hamilton’s claim was ultimately settled for $475,000, comprised of defendant’s $100,000 policy limits and $375,000 from plaintiffs excess coverage. Plaintiff contends that defendant’s failure to act in good faith and with due diligence to effect a settlement with Hamilton caused plaintiffs share of the settlement to be higher than it would otherwise have been. The jury found defendant liable and awarded…