Donna driver gets into a car accident with Vic Victim in Cleveland, Ohio. Vic sustains severe injuries. Donna admits liability as she knows that she ran a red light by mistake, thus causing the accident. Donna has auto insurance with an insurance company called Gekko. Her policy has a liability coverage limit of $100,000. Unfortunately, Vic’s medical bills alone run close to $100,000 and between that and his missed work and pain and suffering, he appears to have a strong case to recover significantly more than that.; However, Vic is in no mood for litigation. He, therefore, offers to settle the whole case for $100,000. Donna pleads with Gekko to settle the case for the $100,000, as she knows that at trial, she will probably get hit with a verdict for more than that. However, Gekko refuses, saying that it will not settle for more than $50,000. If that amount won’t be accepted, it will take its chances at trial.; The case goes to trial and Vic eventually wins a verdict of $200,000. $100,000 is paid by Gekko and Donna is forced into bankruptcy because she cannot pay off the remaining $100,000. Donna sues Gekko in Ohio civil court, claiming that under Ohio law, the insurance company had a duty to negotiate in good faith. Donna claims that it was obvious that Vic’s case was worth more than $100,000 and that Gekko’s intransigence caused her now to face bankruptcy. She, therefore, asks that Gekko be forced to pay the full $200,000 to Vic so that she does not have to.; Please read the following cases; Shaeffer, Whiting v. Grange Mutual Casualty Company, 1981 Ohio App. LEXIS 14351 (Ohio Ct. App. 1981); Schneider v. Eady, 2008-Ohio-6747 (Ohio Ct. App. 2008); Discuss, in about one page for each case, how each of those two cases is likely to affect our case.; This is NOT an IRAC-based essay assignment

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Good Faith Duty to Act in Good Faith The determination of whether an insurance company has acted in ... View the full answer