Insurer Violated Stowers Duty To Settle Negligence Suit, 5th Circuit Affirms

(March 9, 2021, 9:52 AM EST) -- NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on March 4 held that a primary insurer’s duty under G.A. Stowers Furniture Co. v. Am. Indem. Co. was triggered by a third offer to settle an underlying negligence lawsuit arising from a fatal collision with a stopped truck and that the insurer violated its settlement duty, affirming a lower federal court’s ruling in favor of an excess insurer seeking reimbursement for its nearly $8 million contribution to the $10 million settlement following a $28 million jury verdict....

Attached Documents

Related Sections