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California Court of Appeal

Reid v. Mercury Insurance Company, B241154

Summary judgment for defendant-insurer on plaintiff's claims of bad faith for allegedly failing to settle a third party claim within policy limits, is affirmed, where: 1) an insurer's duty to settle is not precipitated solely by the likelihood of an excess judgment against the insured; and 2) in the absence of a settlement demand or any other manifestation the injured party is interested in settlement, when the insurer has done nothing to foreclose the possibility of settlement, there is no liability for bad faith failure to settle.

Appellate Information

  • Decided 10/07/2013
  • Published 10/07/2013




  • California Court of Appeal


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