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MOUTSOPOULOS v. AMERICAN MUT. INS. CO.

No. 78-1870.

607 F.2d 1185 (1979)

Emmanuil MOUTSOPOULOS, Plaintiff-Appellant, v. AMERICAN MUTUAL INSURANCE COMPANY OF BOSTON, a corporation, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided July 20, 1979.

As Amended on Denial of Rehearing October 1, 1979.

Attorney(s) appearing for the Case

Paul D. McRoberts, Minneapolis, Minn., for plaintiff-appellant.

Proctor D. Robison, Milwaukee, Wis., for defendant-appellee.

Before FAIRCHILD, Chief Judge, MOORE, Senior Circuit Judge, and WOOD, Circuit Judge.

HARLINGTON WOOD, Jr., Circuit Judge.

The sole issue presented in this appeal is, once an insurance company's liability for its bad faith refusal to settle a claim against its insured is established, whether the assignee of the insured's cause of action against the insurer is entitled as a matter of law to recover damages equal to the excess judgment entered against the insured.

In October 1969 a Chicago and Northwestern Transportation Company (C&NW) train...

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