Leslie Salt Co. v. St. Paul Mercury Insurance

I agree with the majority’s conclusion that Leslie’s loss was covered by its policy with St. Paul; that the jury could reasonably have found bad faith in St. Paul’s delay while pretending to reconsider its original denial; and that under California law, by which we are bound in this diversity action, it was error to award attorney’s fees for any portion of plaintiff’s recovery in excess of that due under the policy.

But for reasons which I shall attempt to explain, I believe that the finding that St. Paul was in bad faith in its initial denial of *663coverage simply is without support in this…