Case Briefs

The Supreme Court of Georgia, applying state law, has ruled in a unanimous decision that a policyholder's complaint against its insurer seeking coverage for amounts paid to settle an underlying lawsuit and alleging bad faith was properly dismissed on the grounds that the policyholder settled the underlying lawsuit without its insurer's consent. Piedmont Office Realty Trust, Inc. v. XL Specialty Insurance Co., No. S15Q0418 (Ga. Apr. 20, 2015). In so holding, the court rejected the policyholder's argument that the insurer's consent was not required because the insurer allegedly withheld such consent unreasonably and in bad faith. The court also rejected the policyholder's argument that court approval of the underlying settlement transformed the settlement into a “legal obligation to pay.”