Tidyman’s Mgmt. Servs., Inc. v. Nat’l Union Fire Ins. Co.

In Tidyman’s I, the Supreme Court affirmed the district court’s finding that National Union Fire Insurance breached its duty to defend its insured, David and Maxwell. The Court, however, reversed the district court’s entry of summary judgment to the extent it approved a stipulated judgment of $29 million. The Court remanded for the district court to hold a hearing to assess the reasonableness of the settlement amount. On remand, after a reasonableness hearing, the district court again approved the stipulated settlement. The Supreme Court remanded the case to the district court for a second reasonableness hearing, holding (1) the district court erred in using a “reliable evidence” test to assess the reasonableness of the stipulated judgment; and (2) the district court erred in holding that Plaintiffs were entitled to prejudgment interest. View "Tidyman’s Mgmt. Servs., Inc. v. Nat’l Union Fire Ins. Co." on Justia Law