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STATE FARM MUT. AUTO. INS. CO. v. FLOYD

Record No. 841568.

366 S.E.2d 93 (1988)

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY v. Brian H. FLOYD.

Supreme Court of Virginia.

March 4, 1988.

Attorney(s) appearing for the Case

James W. Morris, III (John M. Claytor, Carrie L. Camp, Browder, Russell, Morris & Butcher, Richmond, on briefs), for appellant.

Francis McQ. Lawrence (St. John, Bowling, Payne & Lawrence, Charlottesville, on brief), for appellee.

Present: All the Justices.

RUSSELL, Justice.

This is an appeal of a judgment obtained by an insured against his insurer, based on the insurer's "bad faith" in failing to settle an underlying tort case within policy limits. The earlier tort action had resulted in a judgment against the insured in excess of the policy limits, and the insured sued here for the excess. In this appeal, we examine the nature of "bad faith" and the standard of proof by which it must be shown.

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