11th Circuit OKs $2.7M Bad Faith Award Against Geico After Georgia Supreme Court Justices Comment
Geico insurance argued that it was blindsided by a $2.9 million default judgment in a case it didn't know about, but the U.S. Court of Appeals for the Eleventh Circuit—after asking the Supreme Court of Georgia for guidance—affirmed the award.
On the heels of a Georgia Supreme Court opinion that said a trial judge and jury were legally authorized to award $2.7 million in a bad faith case against Geico insurance, the U.S. Court of Appeals for the Eleventh Circuit—which had asked the justices to weigh in—affirmed the award Tuesday.
The convoluted case—described by Supreme Court Justice John Ellington as being at “the intersection of contract and tort law”—revolved around Geico’s assertions that it had been hit with a multimillion-dollar default judgment before it even knew a lawsuit had been filed.
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