Stewart Title Guaranty Co. v. Aiello

OPINION

LARSEN, Justice.

We withdraw our original opinion of December 22, 1994 and substitute this opinion in its place.

This appeal stems from a lawsuit against a title insurer by its insured, following the insurer’s delayed payment under an agreed judgment. The primary issue in this case is whether an insurer’s duty of good faith and fair dealing survives entry of an agreed judgment. We find that here the duty did survive. We affirm in part and reverse in part.

PROCEDURAL BACKGROUND

Roger and Evelyn Aiello sued Stewart Title Guaranty Company and others claiming that Stewart delayed in paying an…