Agricultural Insurance v. Superior Court

Opinion

ZEBROWSKI, J.

J.This case arises out of an insurance claim for earthquake damage. After the insurer paid the claim in part, controversies arose. The insureds then sued for bad faith and breach of contract. The trial court stayed the action to allow the insurer to complete its investigation. The insurer did, and then cross-complained, contending that the insureds’ claim was in significant part falsified. The insurer pleaded various contract theories, and also the tort theories of “reverse bad faith” (tortious breach of the covenant of good faith and fair dealing by the insureds) and…