Campbell v. Superior Court

Opinion

VOGEL (C. S.), P. J.—

Introduction

This mandamus proceeding raises an important question of law. Does California law recognize a cause of action by an insured against its insurer for breach of the implied covenant of good faith and fair dealing based solely on the insurer’s unjustified failure to defend? The trial court resolved the matter in the negative by sustaining without leave to amend the insurer’s demurrer to the cause of action for breach of the implied covenant of good faith and fair dealing pled by the insured. We decide the matter in favor of the insured.

Factual and…