Liberty Mutual Insurance Company v. Oliver Davis and Lillie Mae Davis

WISDOM, Circuit Judge:

This diversity action is based on an insurance company’s alleged bad faith in failing to settle certain personal injury claims within the limits of an insured’s automobile liability insurance policy. The distinctive feature of the case is that there were multiple claims against an insolvent insured exceeding the limits of his policy. We affirm the judgment in favor of certain claimants, assignees of the insured.

Clinton Bess, the insured, an itinerant fruit-picker, was driving in Sarasota, Florida, November 25, 1962, when his automobile struck the rear end of a car…