Bad Faith Blog

Summary: Lasorte brought suit against Certain Underwriters at Lloyd’s seeking payment on a stipulated judgment agreed to by Lasorte’s employer (the insured) after Lloyd’s refused to defend the employer. After Lloyd’s moved for summary judgment, the United States District Court warned that partial summary judgment in favor of Lasorte was likely regarding Lloyd’s liability, but not damages. Even if Lloyd’s had breached its duty to defend, Lasorte had to prove that the stipulated judgment was reasonable and entered into with good faith.