Buntin v. Continental Insurance

MEMORANDUM

This case involves what has been aptly called the “double barreled proposition” 1 that an insurance company owes two distinct duties to its insured: the duty to defend lawsuits against the insured and the duty to consider in “good faith” any offers to settle such lawsuits. 2 Before the Court are cross-motions for summary judgment. The motions present two specific questions: does an insurer’s honest but erroneous belief that there is no insurance coverage lessen the insurer’s duty to give appropriate consideration to settlement offers; and, do the facts presented, as a matter of law,…