J.B. Aguerre, Inc. v. American Guarantee & Liability Insurance

Opinion

NEAL, J.

Summary

A liability insurer was not in bad faith in funding a settlement with a contribution from its insured where the insured allegedly feared punitive damages, the insurer did not coerce the contribution, the contribution was modest and in reasonable proportion to punitive damage exposure, and where the contribution was the product of collusion between the insured and claimant. We affirm the trial court’s judgment for the insurer following sustaining of a demurrer.

Factual and Procedural Background

Plaintiffs and appellants J.B. Aguerre, Inc., Jean B. Aguerre, and Claudia…