Truck Insurance Exchange v. Bishara

TROUT, Justice.

This is a declaratory judgment action in which Truck Insurance Exchange (Truck) seeks a judicial declaration that it did not act in bad faith in refusing to enter into a settlement agreement with an injured third party.

I

BACKGROUND

The Dotys purchased an automobile from the Bisharas in 1985 upon which new tires had been installed by Elias Bishara approximately one year earlier. Shortly after purchasing the vehicle, two of the tires on the automobile failed while the Dotys were traveling through Arizona, causing the vehicle to roll over. The accident resulted in the death of…