Commonwealth County Mutual Insurance Co. v. Moctezuma

HARDBERGER, Justice.

This is a case arising out of a car wreck, and a subsequent bad faith lawsuit against the insurance company. Both sides engaged in extensive legal maneuvering before the jury trial started. The insurance company first took a default judgment against its insured, Sanchez (the Defendant). Then the plaintiff entered into a settlement agreement with Sanchez, who owned the car, and Ocejo, who was driving the car. This agreed judgment was for $100,000 and included an agreement that recovery would only be sought against the insurance company, Viking. Sanchez and Ocejo then…