Schmitt v. Insurance Co. of North America

Opinion

TODD, J.

Insurance Company of North America (INA), surety on a licensed motor vehicle dealer’s bond, appeals a money judgment entered against it after a trial by the court sitting without a jury. The court’s ruling against INA was on the theory it breached its duty to both claimants and principals on the bond to act in good faith on a bond claim, including a duty of paying claims as they arose and reasonably investigating claims regarding the question of coverage and the question of the obligation to pay. The judgment runs in favor of Conrad Schmitt and Charles Sackett (sometimes…