Farmers Insurance Exchange v. Schropp’s Empirical Analysis

Citation profile

6 federal appellate · 6 district · 66 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 85 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “Farmers could well have notified all of the potential claimants involved that the value of the claims would doubtless exceed policy limits, and invite them or their attorneys to participate jointly in efforts to reach agreement as to the disposition of the available funds. Alternatively, Farmers could have attempted to settle claims within the policy limits as they were presented. Or, as a third alternative, Farmers could have promptly and in good faith commenced an inter-pleader action, and paid its policy limits into court.”

   2 later decisions quote this exact passage · from the majority
   e.g. 631 F. App'x 635 - Kannaday v. Ball · McReynolds v. American Commerce Insurance

2. ““Evidence, including evidence that at time offer to settle within policy limits was made liability insurer knew that claim would be substantial and that medical expenses alone exceeded policy limits and knew that its insured’s negligence caused the injuries and insurer required the injured party to petition for letters of administration of the estate of the deceased insured and actively oppose the appointment of anyone other than insured’s father and denied liability for more than four years after collision, supported finding that the insured acted negligently or in bad faith and was liable in excess of policy limits.” (Id.) As can be seen, in the Schropp case, it was clear that defendant’s negligence caused the injuries. In our situation, this is not the case. To the contrary, all indications are that the negligence of plaintiff himself is the major, if not sole, causal factor for the injuries plaintiff sustained. Thus, I do not believe we have acted in bad faith by denying their claim and telling them early on we did not believe we were liable for plaintiff's injuries. If you have any questions regarding the above or plaintiff’s letter to me, please feel free to contact me at any time. We will proceed to trial on this matter on February 23, 1983 and will report to you directly following a verdict reached by the jury.”

   1 later decision quote this exact passage · from the majority
   e.g. Stetler v. Fosha

3. ““On the contrary, we see no reason why the insolvency of an insured or his estate should excuse the insurer from exercising the same good faith it would be expected to exercise, were the insured fully financially responsible. Further, an insured need not wait until his property is seized under an excess judgment before commencing action against an insurer whom the insured claims has acted negligently or in bad faith in failing to settle a claim within the policy limits. The action lies, whether or not the insured has paid or can pay an excess judgment.” 222 Kan. at 624 .”

   1 later decision quote this exact passage · from the majority
   e.g. Glenn v. Fleming