Moses v. Halstead & Allstate Insurance Company
United States Court of Appeals for the Tenth Circuit
581 F.3d 1248 (2009)
- Written by Tammy Boggs, JD
Facts
In Kansas, Allstate Insurance Company (Allstate) (defendant) issued an insurance policy on a car to the father of Shelby Moses (plaintiff). Thereafter, in Missouri, Chris Halstead (defendant) wrecked the insured car in an accident while Moses was a passenger. Moses was injured, and the incident was reported to Allstate. Back in Kansas, Moses made an offer to Allstate to settle her claims against Halstead for the policy limit of $25,000. Allstate rejected the offer in Kansas. Later, Moses filed a lawsuit in Missouri state court against Halstead, and she was awarded $100,000 in damages. Allstate paid $25,000 of the judgment, and Moses filed a garnishment action against Allstate for its negligent or bad-faith refusal to settle with her earlier. Allstate removed the case to district court, which ruled in Allstate’s favor based on applying Missouri law to the claim. Under Missouri law, Halstead was required to assign his claim for bad-faith refusal to settle to Moses before she could recover against Allstate. Kansas did not have such an assignment-of-claim requirement. Moses appealed.
Rule of Law
Issue
Holding and Reasoning (Seymour, J.)
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