Manu v. GEICO Casualty Co.Annotate this Case
Ebenezer Manu filed a complaint against GEICO Casualty Company alleging that GEICO violated Va. Code Ann. 8.01-66.1 for its bad faith conduct in adjusting his uninsured motorist bodily injury claim. Specifically, Manu alleged that GEICO, his uninsured motorist (UM) carrier, violated its duty of good faith by refusing to pay its UM policy limits prior to Manu obtaining a judgment against the uninsured tortfeasor. GEICO filed a demurrer. The circuit court ultimately granted GEICO’s motion to compel and dismissed the complaint with prejudice, concluding that section 8.01-66.1(D)(1) did not provide Manu a remedy against GEICO. The Supreme Court affirmed, holding (1) section 8.01-66.1(D)(1) does not create a duty for UM carriers to settle a case prior to trial but, rather, creates a remedy for the conduct of UM carriers that refuse in bad faith to pay once the insured has obtained judgment; and (2) accordingly, Manu’s complaint failed to state a cognizable claim.