Possible liability insufficient to support bad faith settlement suit

Insurance Matters

By Don R. Sampen

Don R. Sampen is a member of the appellate practice group of Clausen, Miller P.C., where he focuses on appellate, commercial and insurance-related litigation. He also teaches insurance law at Loyola University Chicago School of Law. His column appears twice monthly.

Posted July 16, 2019 10:18 AM

The 7th U.S. Circuit Court of Appeals, interpreting Illinois law, recently held that an insurer did not act in bad faith despite having the opportunity to settle within its policy limit a medical-malpractice case in which a damage judgment against the insured was entered in excess of the limit.The insured in Surgery Center at 900 N. Michigan Avenue LLC v. American Physicians Assurance Corp., 2019 U.S. App. Lexis 12929 (7th Cir. April 12, 2019), was represented by Spellmire Bruck LLP. Stamos & Trucco LLP represented the …

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