FRANKENMUTH MUT. INSU. CO. v. KEELEY

Docket No. 81566, (Calendar No. 7).

433 Mich. 525 (1989)

447 N.W.2d 691

FRANKENMUTH MUTUAL INSURANCE COMPANY v. KEELEY

Supreme Court of Michigan.

Decided October 19, 1989.


Attorney(s) appearing for the Case

Garan, Lucow, Miller, Seward, Cooper & Becker, P.C. (by Milton Lucow and Rosalind Rochkind); (Jonathan E. Holt, of counsel), for the plaintiff.

Dean, Dean, Segar, Hart & Shulman, P.C. (by Robert L. Segar), for the defendant.

Before: E.A. WEAVER, P.J., M.J. KELLY and J.R. KIRWAN, JJ.


ARCHER, J.

We granted leave to appeal and cross-appeal to consider whether the trial court and the Court of Appeals correctly limited the nature and amount of damages that can be recovered by an insured when an insurer has breached its duty to settle a claim.

We hold that when an insurer has exhibited bad faith in failing to settle a claim on behalf of its insured, and a judgment in excess of the policy limits results, the insurer is liable for the excess...

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