Peoria, IL (309) 676-0591

Steele v. Hartford Fire Insurance Co.

778 F.2d 441 (7th Cir. 1986)

Absence of bad faith in policy limits case.

Successful plaintiffs in personal injury action, as assignees of defendant’s right to sue, brought action against defendant’s liability insurer, alleging bad faith failure to settle claim. The United States District Court for the Central District of Illinois, Harold Albert Baker, Chief Judge, entered judgment against insurer, and it appealed. The Court of Appeals, Posner, Circuit Judge, held that insurer did not act in bad faith in failing to settle personal injury claim against its insured to amount of policy limits in return for covenant not to sue.  Read More