West American Ins. Co. v. RLI Ins. Co., et al, No. 11-3867 (8th Cir. 2012)
Annotate this CaseWest commenced this diversity action to recover expenses incurred in defending Miller in a garnishment action, asserting tort claims under Missouri law against RLI for vexatious refusal to pay, bad faith refusal to pay, and prima facie tort, and claims of negligence and negligent misrepresentations against RLI's independent claims agent, ASCK. West also sought a declaration that it owed no duty to protect RLI in the underlying arbitration. RLI counter claimed, alleging that, prior to the arbitration, West negligently and in bad faith refused to settle the underlying claims for less than its policy limits. West's response added claims for indemnification and contribution against ASCK. The court reversed the grant of summary judgment dismissing RLI's refusal-to-settle counterclaim and remanded for further proceedings. The court declined to review the district court's grant of summary judgment dismissing West's affirmative defenses to the counterclaim. In all other respects, the court affirmed the district court's orders and judgment.
Court Description: Civil case - Insurance. District court did not err in applying choice-of- law principles to determine that Kansas law applied to the dispute; Kansas courts would allow defendant's counterclaim alleging West had wrongfully rejected multiple settlement offers by underlying claimants prior to the arbitration of their state law claims to proceed, and the district court erred in granting West summary judgment on defendant's counterclaim; dismissal of West's claims against defendant ASCK affirmed.
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