Insured’s Bankruptcy Does Not Shield Insurer From Bad Faith Claim In Excess Of Limits Under Georgia Law
Summary: The Court of Appeals of Georgia, relying on Georgia state law and federal bankruptcy statutes, held that the bad faith claim, and the potential for a verdict in excess of policy limits, survived an insured’s bankruptcy. Flanders, et al. v. Jackson. In the underlying tort case, the plaintiff’s 16-year-old son was a passenger in the insured’s vehicle when the insured lost control while traveling at excessive speed, careening off the road, flipping, and ejecting the 16-year-old from the backseat, causing his death.