Mutual of Enumclaw Insurance v. T&G Construction, Inc.

¶1

Absent bad faith, the court’s determination that a stipulated covenant judgment settlement agreement between an insured and the claimant is reasonable does not prevent an insurer in a declaratory judgment action from contesting coverage and its obligation to indemnify the insured. In this declaratory judgment action, the trial court erroneously relied on the findings and conclusions from the reasonableness hearing in ruling that Mutual of Enumclaw Insurance Company (MOE) was as a matter of law estopped from challenging coverage and its obligation to indemnify and that MOE was obligated to…