Findley v. Time Insurance

George Rose Smith, Justice.

Within the past ten years a few court decisions, primarily in California, have recognized what may be referred to as the tort of bad faith. Under those decisions an insurance company, in addition to its liability on the contract, may also be liable to its insured in tort for breach of an implied duty to deal fairly and in good faith with the insured in the settlement of a claim under the policy. A recent discussion of the cases may be found in a Comment, “The Tort of Bad Faith: A Perspective Look at the Insurer’s Expanding Liability,” 8 Cumberland L. Rev. 241 (1977).