An insurer rejected an early settlement offer within policy limits but changed its mind after getting more information.  The plaintiff said "too late" and proceeded to settle with the policy-holder for a confession of judgment, a covenant not to sue, and an assignment of claims against the insurer.  The district court granted summary judgment for the insurer on the plaintiff-assignee’s claims, under Kansas law, for negligent and bad faith failure to settle, and the Tenth Circuit affirmed.  "We would be turning the cause of action on its head by holding an insurance company liable where it eventually offered to settle the claim for the policy limits, but a claimant rejected the offer precisely in order to manufacture a lawsuit against the insurer for bad-faith refusal to settle."  Wade v. EMCASCO Ins. Co., Nos. 05-3044 & 05-3054 (10th Cir. Apr. 10, 2007).

Barry Barnett

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