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Vol. 3, Iss. 14
October 6, 2014

5th Circuit Addresses Excess Insurer’s Bad Faith Claim Against Primary

RSUI Indem. Co. v. American States Ins. Co., No. 14–30033 (5th Cir. Sept. 25, 2014) (addressing Louisiana law) (“We hold only that under the circumstances of this case, where an excess carrier alleges that a primary insurer in bad faith breached its duty to defend a common insured properly and caused exposure of the insured to an increase in the settlement value of the case above the primary policy limit, which the excess insurer must then satisfy on the insured’s behalf, the excess insurer has a subrogated cause of action against the primary insurer for any payment above what it otherwise would have been required to pay.”)

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