Shearer v. Reed

428 A.2d 635 (1981)

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Nature of the Case

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Facts

Shearer (P) was injured by Reed (D). P offered a settlement to D within D's liability insurance policy limits of $10,000. D's insurer refused. The jury awarded P damages of $34,000. P then proceeded with a garnishment claim against D's insurer for the balance of the judgment based on the assertion that the insurer failed to settle the claim against D in good faith. An expert offered testimony that the insurance company had not acted in good faith. The evidence was substantial that the verdict would be for more than the policy limit. The jury found for P, and the insurer appealed.