Schlauch v. Hartford Accident & Indemnity Co.

Opinion

SPARKS, J.

In this case of first impression, we hold that the decision in Royal Globe Ins. Co. v. Superior Court (1979) 23 Cal.3d 880 [153 Cal.Rptr. 842, 592 P.2d 329], is retroactive. We further hold that a claimant who settles with some tortfeasors and then recovers a net judgment of zero against other insured tortfeasors is not precluded by that judgment from bringing a bad faith suit against the breaching insurance carrier. Finally, we also hold that although a subsequent tender of the policy does not cure an earlier bad faith breach, it does serve to mitigate damages.

Plaintiff Gary…