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In Eleventh Circuit McNamara v. Gov’t Employees decision court held consensual settlement serves as excess judgment for bad faith claim. In follow up decision, Eleventh Circuit extended McNamara reasoning to case involving accepted proposal for settlement.
The Eleventh Circuit revived a couple's suit against Progressive American Insurance Co. over the handling of an auto crash case, rejecting the trial court's conclusion that a settlement in the case did not constitute an "excess judgment" necessary for the couple's bad faith claim against the insurer.