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This is a reposting link for our Saturday May 9, 2015 post.
Chief Judge Conti of the Western District provided a detailed analysis of potential bad faith issues that might arise during settlement negotiations/mediation of a third party claim, where the insured (represented by personal counsel at the mediation) is involved in potentially or actually contributing personal funds toward a settlement, and negotiating with the underlying plaintiff and the insurer to reach a settlement figure. The court also provided a detailed analysis of contractual (Cowden) bad faith claims where there is no actual excess verdict.