Frankenmuth Mutual Insurance v. Keeley

The question presented concerns the assessment of damages in an action against an insurer for refusing in "bad faith” to settle within policy limits.1

The Court of Appeals — on the authority of this Court’s decision in Stockdale v Jamison, 416 Mich 217; 330 NW2d 389 (1982),2 and its earlier decision, applying Stockdale, in Sederholm v Michigan Mutual Ins Co, 142 Mich App 372; 370 NW2d 357 (1985) — held that the "measure of damages in a breach of a duty to settle is limited to the assets of *547the assignor not exempt from legal process,” and remanded for a determination of the extent of the assets…