Caffery, Oubre, Campbell & Garrison, L.L.P.
New Iberia
Service, Integrity, Results

Failure to inform insured of offer found to be bad faith (pt.2)


In a recent case involving a certified question to the Louisiana Supreme Court involving a bad faith insurance law claim, the Court found that an insurer has a duty of good faith and fair dealing to their customer.

The case involved a claim against an insured. The insurance company received an offer to settle the case for the policy limit. The insurer did not respond, nor did it inform the insured of this request. Later, the insurer attempted to settle for the previous amount and the injured party refused. In a lawsuit, the injured party received a judgment for $150,000 greater than the policy coverage. 


The insured sued the insurance company for bad faith, due to their failure to settle the case after the initial inquiry by the injured party.

In the case, the Court found that the duty of good faith to an insured is broader than to a third party. They also interpreted a section of the Louisiana statutes to mean that misrepresentations of "pertinent facts" or coverage issues could constitute bad faith.

The Court's defining of "pertinent facts" to go beyond coverage issues is important for insurers. This means that insurance companies need to be careful when disclosing facts or failing to disclose facts to their customers.

While this could increase the liability of insurers in the state, the Court warned that the statute still must be strictly construed. Nonetheless, when presented with a potential offer for settlement within the policy limits, it does not seem that it is too much of a stretch to see that an insured is likely under virtually any circumstance to view that as a pertinent fact.

Source:, "Bad Faith Liability and an Insurer’s Refusal to Settle," Robert Redfearn, Jr., July 22, 2015

No Comments

Leave a comment
Comment Information

contact us

With offices in Lafayette and New Iberia, our lawyers represent clients in state and federal courts throughout Louisiana. Contact us today to schedule your case assessment with one of our experienced attorneys. Email or call us at 337-446-2442 to reach our Lafayette office or call 337-352-2310 to reach our New Iberia office.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lafayette Office
100 East Vermilion Street
Suite 201
Lafayette, LA 70501

Phone: 337-446-2442
Map & Directions

Lafayette Office

New Iberia Office
800 South Lewis Street
Suite 205
New Iberia, LA 70560

Phone: 337-352-2310
Map & Directions

New Iberia Office