Johnson v. Farm Bureau Mutual Insurance Co.

ANDREASEN, Justice.

An insured sued its liability insurer alleging breach of contract for refusal to defend or indemnify the insured in a prior liability suit and alleging first-party bad faith refusal to cover the claim. The insurer answered and counterclaimed, asserting the insured committed “reverse bad faith” and abuse of process by filing the first-party bad faith claim. The major issue in this appeal is whether we should recognize a tort of reverse bad faith when an insured brings a frivolous bad faith claim against its insurer. We affirm the district court’s grant of summary judgment…