Defendant's Attorney: Baltimore, Maryland insurance defense lawyer represented the Defendant.

Description: Baltimore, Maryland insurance law lawyers represented the Plaintiff who sued on bad faith breach of insurance contract theories.

Maryland law recognizes a tort cause of action by an insured party where an insurer refuses in bad faith to settle a third-party's claim against the insured. Mesmer v. Md Auto. Ins. Fund, 353 Md. 241, 725 A.2d 1053, 1061-62 (Md. 1999).The basis for the insurer's tort duty to the insured arises from the insurer's "exclusive control" of "settlement and defense of any claim or suit against the insured," such that "there is a potential, if not actual, conflict of interest giving rise to a fiduciary duty." Id. at 1063(quoting Sweeten v. Nat'l Mut. Ins. Co. of D.C., 233 Md. 52, 194 A.2d 817, 818(Md. 1963)). In determining liability for the failure to settle a claim within the applicable policy limits, Maryland has adopted a good faith standard.

Outcome: 03/06/2024 Settlement Conference held on 3/6/2024 before Magistrate Judge A. David Copperthite. (dg4s, Deputy Clerk) (Entered: 03/06/2024)
03/06/2024 20 ORDER DISMISSING case with each party to bear its own costs unless otherwise agreed without prejudice to the right of a party to move for good cause to reopen this action if settlement is not consummated. Signed by District Judge Ellen Lipton Hollander on 3/6/2024. (heps, Deputy Clerk) (Entered: 03/06/2024)

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