Threshold for Extra-Contractual Liability Reaches New Low

The United States District Court for the District of South Carolina recently ordered an auto insurer to pay a $1.1 million dollar excess judgment because the settlement checks sent by the adjuster did not arrive in the plaintiff’s counsel’s hands within the 24-hour limit set by the plaintiff’s counsel. With a claim-to-settlement span of a mere 25 days, this case may set a new, far lower standard for “negligent” claims handling, and allowed the plaintiff’s counsel to place requirements on how a carrier must handle …

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