Walbrook Insurance v. Liberty Mutual Insurance

Opinion

PERLEY, J.

A jury determined that a primary insurer was not guilty of bad faith when, having rejected pretrial offers to settle a claim against its insured within the limits of its policy, it entered into an agreement at trial which resulted in a judgment exceeding its policy limits and thus required a substantial payment by the insured’s excess insurers. Concluding that the jury’s verdict is supported by substantial evidence, and that no prejudicial instructional error was committed by the trial court, we affirm.

Background

On November 22,1980, Lynn Cameron lost control of the Chevrolet…