Progressive American Insurance Co is not liable for a $10 million verdict a bereaved mother in Florida obtained after Progressive failed to follow her attorney’s instructions for drafting a $20,000 settlement agreement, a federal appeals court held Tuesday.
The 11th U.S. Circuit Court of Appeals affirmed Progressive’s win in a third-party bad faith lawsuit by Heather Eres, whose 8-year-old son was killed in a 2007 train collision caused by Progressive’s insured.
Progressive admittedly botched the settlement with its wording of the releases; however, under a totality of the circumstances approach, its handling of Eres’ claim was “diligent,” “expeditious,” and “quite the opposite” of bad faith, Circuit Judge Kevin Newsom wrote for the court. He was joined by Circuit Judges Jill Pr...