Legal Opinion
Frankenmuth Mutual Insurance v. Keeley
Michigan Supreme Court
Decided October 19, 1989No. 81566, (Calendar No. 7)PublishedCited by 20 opinions
1Opinion of the CourtArcher, J.
We granted leave to appeal and cross-appeal to consider whether the trial court and the Court of Appeals correctly limited the nature and amount of damages that can be recovered by an insured when an insurer has breached its duty to settle a claim.
We hold that when an insurer has exhibited bad faith in failing to settle a claim on behalf of its insured, and a judgment in excess of the policy limits results, the insurer is liable for the excess without regard to whether the insured has the capacity to pay. Accordingly, we reverse the holding of the Court of Appeals and remand the case *529to the…
2Cases cited27 opinions
- Gray v. Nationwide Mutual InsuranceSupreme Court of Pennsylvania · 1966
- Brown v. Guarantee InsuranceCalifornia Court of Appeal · 1957
- Commercial Union Insurance v. Medical Protective Co.Michigan Supreme Court · 1986
- City of Wakefield v. Globe Indemnity Co.Michigan Supreme Court · 1929
- Southern Fire & Casualty Co. v. NorrisCourt of Appeals of Tennessee · 1952
22 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- MEDICAL MUTUAL LIABILITY INS. SOC. OF MARYLAND v. EvansCourt of Appeals of Maryland · 1993
- Thurston v. Continental Casualty Co.Supreme Judicial Court of Maine · 1989
- Matter of LevineArizona Supreme Court · 1993
- Stryker Corporation v. National Union Fire InsuranceCourt of Appeals for the Sixth Circuit · 2012
- FRANKENMUTH MUTUAL INSURANCE COMPANY v. KeeleyMichigan Supreme Court · 1990
15 more not listed; retrieve them via the Exa API.