Insurer Reasonably Believed Policy Did Not Cover Insured’s Conduct, Majority Rules

Mealey's (July 1, 2021, 1:37 PM EDT) -- DENVER — A majority of the Seventh Circuit U.S. Court of Appeals on June 29 affirmed a lower federal court’s summary judgment ruling in favor of an insurer as to a third-party complaint alleging that the insurer breached its fiduciary duties and breached the implied covenant of good faith and fair dealing by not settling an underlying aggravated assault lawsuit within policy limits, finding that the insurer reasonably believed that the policy did not cover the insured’s conduct because it knew the insured pleaded guilty to aggravated assault and knew the underlying complaint alleged intentional conduct in part....