Besel v. Viking Insurance Company of Wisconsin

Oral Argument Date: 01/29/2002 Concurring: Gerry L. Alexander, Charles Z. Smith, Barbara A. Madsen, Richard B. Sanders, Faith E Ireland, Bobbe J. Bridge, Tom Chambers, Susan J. Owens En Banc This case involves the issue of whether a covenant not to execute a judgment against an insured precludes a showing of harm where the insured has settled a claim his insurance company refused in bad faith to settle. We are further asked to determine whether such a settlement amount is the proper measure of damages when a trial court approves it as reasonable. We hold a covenant not to execute does not preclude a showing of harm to the insured and a settlement approved as reasonable is the proper measure of damage caused by an insurance company's bad faith. FACTS