Pemberton v. Farmers Insurance Exchange

OPINION

The district court granted respondent Farmers Insurance Exchange’s (“Farmers”) motion to dismiss appellant Sherry Pemberton’s bad faith claim. On appeal, Pemberton contends that the district court erroneously dismissed her bad faith claim because Nevada recognizes an implied covenant in automobile insurance policies that the insurance company will handle uninsured/underinsured motorist (“UM”) claims fairly and in good faith. We agree.

Facts

On December 5, 1989, appellant Sherry Pemberton was involved in an automobile collision with John C. Grabow in Clark County, Nevada. Pemberton…