The Eleventh Circuit Court of Appeals has affirmed a more than $8.2million judgment against Nationwide Insurance ina contentious and closely-watched traffic fatalitycase.
Defense attorneys had characterized the case as a prime exampleof "set-up" cases in which lawyers use time-limited demands to ginup bad faith claims against insurers. But the appeals courtrejected that claim and left Nationwide on the hook for a juryaward of more than $5.8 million plus interest that — as of lastAugust — totaled more than $2.4 million.
The Georgia Chamber of Commerce last year filed anamicus brief on Nationwide's behalf terming the case anexample of a "recent epidemic of bad-faith litigation inGeorgia."
Upheld jury verdict
The case revolves around the use of so-called Holt demands, namedfor the 1992 Georgia Supreme Court decision in SouthernGeneral Ins. Co. v. Holt, 416 S.E. 2d 274. That opinion uphelda jury verdict that an insurer had demonstrated bad faith when itfailed to timely respond to a policy limit request on behalf of awoman injured in a car wreck, even though medical records showedher bills far exceeded the policy limits.
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Greg Land
Greg Land covers topics including verdicts and settlements and insurance-related litigation for the Daily Report in Atlanta.
