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CHADIMA v. NATIONAL FIDELITY LIFE INS. CO.

Nos. 94-2056, 94-2156 and 94-2157.

55 F.3d 345 (1995)

George W. CHADIMA, Trustee of the George Milton Chadima and Lillian Esther Chadima Trust; Swisher Trust & Savings Bank, as Trustee of the George Milton Chadima and Lillian Esther Chadima Trust; George W. Chadima, Executor of Estate of George Milton Chadima; Lillian Esther Chadima, Executor of Estate of George Milton Chadima, Appellants/Cross-Appellees, v. NATIONAL FIDELITY LIFE INSURANCE COMPANY, Appellee/Cross-Appellant, State of Iowa, Civil Reparations Trust Fund, Intervenor-Appellee/Cross-Appellant.

United States Court of Appeals, Eighth Circuit.

Decided April 26, 1995.

Rehearing and Suggestion for Rehearing Denied June 14, 1995.

Attorney(s) appearing for the Case

Kevin H. Collins, Cedar Rapids, IA, argued for appellant (James D. Hodges, on brief).

Richard E. Mull, Ames, IA, argued for appellee the State of Iowa. John DeDoncker, Davenport, IA, argued for appellee Nat. Fidelity. (Bonnie Campbell, Craig Kelinson and Thomas J. Shields, on brief).

Before McMILLIAN, Circuit Judge, JOHN R. GIBSON, Senior Circuit Judge, and SHAW, District Judge.

Rehearing and Suggestion for Rehearing En Banc Denied June 14, 1995.

JOHN R. GIBSON, Senior Circuit Judge.

This diversity case presents the question of whether a judge or jury should decide whether an insurer had a reasonable basis for denying a claim in a first-party bad faith action. Cases from the Iowa Supreme Court go both directions. The magistrate judge granted the insurer's post-trial motion for judgment notwithstanding the verdict, concluding that...

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