Hollaway v. Direct Gen. Ins. Co. of Miss., Inc.Annotate this Case
Samantha Hollaway was involved in an accident with Harry Sykes, who was insured by Direct General Insurance Company of Mississippi. Hollaway sought compensation from Direct General for both bodily and property damage. Direct General settled Hollaway’s property damage claim, but there was a breakdown of settlement negotiations with respect to Hollaway’s bodily injury claim. Hollaway filed suit, asserting a third-party bad faith claim against Direct General under the Kentucky Unfair Claims Settlement Practices Act. The trial court granted summary judgment in favor of Direct General, finding that liability and causation were legitimately disputed, and therefore, Direct General could not have acted in bad faith as a matter of law. The Court of Appeals affirmed. The Supreme Court affirmed, holding that Hollaway failed to make a colorable third-party bad-faith claim and, therefore, summary judgment in favor of Direct General was appropriate.