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MAINE BONDING v. CENTENNIAL INS. CO.

A79-11-05471; CA A23760.

667 P.2d 548 (1983)

64 Or.App. 97

MAINE BONDING & Casualty Company, Respondent-Cross-Appellant, v. CENTENNIAL INSURANCE COMPANY, a New York Corporation, Appellant-Cross-Respondent.

Court of Appeals of Oregon.

Decided August 3, 1983.

Reconsideration Denied September 16, 1983.

Attorney(s) appearing for the Case

Michael A. Lehner, Portland, argued the cause for appellant-cross-respondent. With him on the briefs was Mitchell, Lang & Smith, Portland.

Emil R. Berg, Portland, argued the cause for respondent-cross-appellant. With him on the briefs were John R. Barker, and Wolf, Griffith, Bittner, Abbott & Roberts, Portland.

Before RICHARDSON, P.J., and VAN HOOMISSEN and NEWMAN, JJ.

RICHARDSON, Presiding Judge.

Plaintiff is the excess liability insurer and defendant the primary insurer for Great Balls of Fire, Inc., whose negligence caused fire damage to the property and business of Gene Hamilton. Hamilton's claim was ultimately settled for $475,000, comprised of defendant's $100,000 policy limits and $375,000 from plaintiff's excess coverage. Plaintiff contends that defendant's failure to act in good faith and with due diligence to effect a...

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