A Georgia Court of Appeals decision in a bad faith case last week offers insight into what happens when an insurance company declines a policy limits settlement in a case that goes on to a big verdict — in this instance $5 million.

Bottom line: It's complicated, and it's going to a jury.

Judge Christopher McFadden ruled that DeKalb County State Court Judge Michael Jacobs was wrong to toss out a bad faith lawsuit against First Acceptance Insurance Company of Georgia. "There are genuine issues of material fact as to the failure-to-settle claim," McFadden said, writing for a panel that included Judges Elizabeth Branch and Charlie Bethel.

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Katheryn Hayes Tucker

Katheryn Hayes Tucker is an Atlanta-based reporter covering legal news for the Daily Report and other ALM publications.