Atlanta Partner Bill Custer was quoted March 12 by Law360 regarding Georgia’s high court ruling that an insurer can’t be sued for bad faith failure to settle a claim against its policyholder unless it first received a valid settlement offer within policy limits. This decision clarifies the prerequisites for filing bad faith actions in the state and should curtail what some observers call abusive “gotcha” demands by plaintiffs’ lawyers.

“We view the decision as a good first step at cleaning up this area of the law,” said Custer, who filed an amicus brief on behalf of the Georgia Chamber of Commerce. "The Georgia Supreme Court had not delved deeply into this area in a number of years, and I think they were eager to corral the confusion that had arisen into a clearly defined standard.”

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