First State Insurance v. Kemper National Insurance

Agid, A.C.J.

— Lance Powell was electrocuted on property owned by Great Western Lumber Company (Great Western). Lumbermens Mutual Casualty Company (Lumbermens) was Great Western’s primary insurer, and First State Insurance Company (First State) provided Great Western’s excess liability coverage. After a jury awarded Powell’s family $2 million, Lumbermens tendered its policy limits to First State for payment. Believing that Lumbermens had badly mishandled the claim, First State sued alleging bad faith, negligence, misrepresentation, and a violation of the Consumer Protection Act (CPA). The…