Colsch v. Travelers Insurance

This is an appeal by the plaintiffs (husband and wife) from an order of the judge sustaining a demurrer to the plaintiffs’ declaration in four counts. The plaintiffs alleged that an action was brought against them following a motor vehicle accident and that the defendant insurer acting “arbitrarily and in bad faith, breached its obligation ... to exercise good faith and diligence in protecting the . . . [plaintiffs’] interests by disregarding” an offer to settle the claim within the policy limits and thus subjecting the plaintiffs to a judgment in excess of the policy limits. The plaintiffs…