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Kransco v. American Empire Surplus Lines Insurance Company

6/22/2000

subject to tort defenses." (Richmond, The Two-way Street of Insurance Good Faith: Under Construction, But Not Yet Open, supra, 28 Loy. U. Chi. L.J. 95, 140, fns. omitted.) When it abolished the all-or-nothing contributory negligence doctrine, this court said the decision was "to be viewed as a first step in what we deem to be a proper and just direction." (Li, supra, 13 Cal.3d 804, 826.) By refusing to recognize a partial defense of comparative fault in insurance bad faith actions based on unreasonable failure to settle with third parties, the majority takes a step backward, making liability insurers the only parties to whom this court has denied the benefits of California's comparative fault tort system.


Rather than perpetuate an all-or-nothing system in this one tort setting, I would take the next logical step in the proper and just direction of equitable apportionment by recognizing that the comparative fault system includes insurance bad faith tort litigation.


KENNARD, J.


Review Granted 54 Cal.App.4th 1171


Court: Superior


County: San Francisco


Judge: Carlos Bea






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