Thursday, June 28th, 2007...2:11 pm
9th Cir: Alaska Insurance Law
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In an unpublished (and non-employment) case, the Ninth Circuit today affirmed summary judgment by Judge Beistline, who had held that (1) State Farm had not breached the covenant of good faith and fair dealing when it refused to investigate a settlement offer, and that (2) the insured’s subsequent acceptance of a settlement offer had breached his duty to cooperate. State Farm v. Hachez, No. 04-36132 (9th Cir. June 27, 2007).
The dissent argues that the panel should have certified to the Alaska Supreme Court the issue whether an insurer’s failure to approve a settlement because of a coverage dispute would amount to a breach of contract sufficient to permit a subsequent breach by the insured.
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