Gourley v. State Farm Mutual Automobile Insurance

Opinion

LUCAS, C.J.

—We granted review to resolve an issue that has engendered conflicting appellate decisions: whether a plaintiff is entitled to receive prejudgment interest under Civil Code section 3291 (hereafter section 3291) on an award of compensatory and punitive damages for an insurer’s breach of the implied covenant of good faith and fair dealing. Section 3291 allows the plaintiff in “any action brought to recover damages for personal injury sustained by any person resulting from or occasioned by the tort of any other person, corporation, association, or partnership” (italics added)…