Opinion ID: 2320872
Heading Depth: 3
Heading Rank: 4

Heading: Failure to Effectuate a Prompt Settlement

Text: [¶ 32] The UCSPA provides that an insurer is liable if, without just cause, it fails to effectuate a prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear. Id. § 2436-A(1)(E). [A]n insurer acts without just cause if it refuses to settle claims without a reasonable basis to contest liability, the amount of any damages or the extent of the injuries claimed. Id. § 2436-A(2). The plaintiffs argue that Allstate's failure to pay the remaining $40,000 UM benefits after the Saucier decision constitutes a violation of this section. [¶ 33] Contrary to the plaintiffs' assertion, Saucier did not compel Allstate to immediately render payment to the plaintiffs in the full amount of its liability limits. We held in Saucier that, pursuant to its policy, Allstate was entitled to deduct only the amounts paid to the insured by the underinsured's carrier. Saucier, 1999 ME 197, ¶ 12, 742 A.2d at 486. The basis that Allstate's attorney asserted in the post- Saucier letters for not immediately offering the entire $20,000 per person, was that a settlement was pending in the underlying interpleader action, which would allow Allstate to offset from its liability limits the amounts received by the plaintiffs. This was a reasonable basis for contesting liability, and there is nothing in the record to contradict that basis. Accordingly, the Superior Court did not err in entering summary judgment for Allstate on this issue. [7]