Eighth Circuit: No Bad Faith Where Insured Failed to Make a Sufficient Demand and Insurer Refused to Entertain Settlement Offer Prior to Completing Investigation -
Purscell v. Tico Ins. Co., No. 13-2362, 2015 WL 3855253 (8th Cir. June 22, 2015). Court holds it was not bad faith for insurer to pursue investigation into underlying lawsuit before considering settlement demand. One fatality and severe injuries resulted when, on the evening of May 19, 2006, Ben Purscell accelerated to 75 m.p.h. and ran a stop sign, crashing into the vehicle of Tim and Amy Carr. Purscell’s passenger, Amy Priesendorf, was ejected from the car and pronounced dead at the scene. Although all surviving passengers suffered injuries, Tim Carr’s injuries were the most severe.
Please see full alert below for more information.