By William T. Barker & Ronald D. Kent, Partners, SNR Denton
Sanderson v. American Family Insurance Co. affirmed summary judgment for an insurer on bad faith, but asserted that the fact that the claim was “fairly debatable” was not (as the trial court had thought) a threshold defense. That “defense” is fundamental to the structure of a bad faith claim, and this commentary concludes that the court only rejected a misunderstood version of the “defense” and is fully consistent with recognition of the properly understood rule.
 Sanderson v. American Family Ins. Co., 2010 Colo. App. LEXIS 1665.
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William Barker and Ronald Kent are authors of New Appleman Insurance Bad Faith Litigation, Second Edition.
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