Torts: Bad Faith Failure to Settle-Collateral Estoppel

Plaintiffs appealed the grant of summary judgment to defendant. Plaintiffs argued that the trial court erred in concluding that the court’s decision in a prior appeal between the parties collaterally estopped plaintiffs from litigating their bad faith failure to settle claim.

Where the prior appeal adjudicated plaintiffs’ equitable garnishment claim, which had been severed from their bad faith claim during trial litigation, res judicata did not bar further litigation of the bad faith claim.

Judgment is reversed and remanded.

Stacy v. The Bar Plan Mutual Insurance Company (MLW No. 79741/Case No. ED110678 – 9 pages) (Missouri Court of Appeals, Eastern District, Hardin-Tammons, J.) Appealed from circuit court, St. Louis County, McLaughlin, J. (A Matthew P. O’Grady, Joseph F. Yeckel, and Michael A. Gross, for appellant) (James C. Leritz, for respondent)