GABINA MALDONADO, Personal Representative of the Estate of Alvin Maldonado, Plaintiff-Appellant, versus THE FIRST LIBERTY INSURANCE CORPORATION, Defendant-Appellee., 342 Fed. Appx. 485

Summary

The decedent was killed in a car accident caused by an insured of the insurer. The representative offered to settle the suit for the $ 25,000 policy limits and an affidavit establishing the extent of the insured's assets. The insurer agreed to tender the $ 25,000, but the insured refused to submit the affidavit. Subsequently, a multi-million dollar judgment was entered against the insured, of which the insurer paid $ 25,000. The court held that the representative's bad-faith claim failed. First, the insurer's actions did not cause the excess judgment; the cause of the excess judgment was the insured's failure to execute the asset affidavit. The insurer warned the insured that if the affidavit was not provided, the representative would not release the insured from liability. Second, the district court properly focused on the insurer's actions because in a bad faith case, the focus was on the actions of the insurer in fulfilling its obligations to the insured. The insurer acted without ...