 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
C.P. v. Allstate Insurance Company3/3/2000
ble for a breach of the fiduciary duty of good faith arising out of the insurance contract, but he could be held liable for negligence arising out of a breach of the general tort duty of ordinary care."
Allstate argues that Continental is "legally and factually inapplicable here" because it concerned a "third party adjuster," not an "employee" of the insurer, and it concerned defense of a claim, not negligent "investigation." But we treated Stanford as though he were the insurer's employee, and the suit dealt directly with Stanford's allegedly negligent investigation.
Allstate alternatively contends that two cases we decided after Continental -- O.K. Lumber Co. v. Providence Washington Insurance Co. and Alaska Pacific Assurance Co. v. Collins --"clearly dictate a finding that the employee is not personally liable." C.P. asserts that Sauer dictates the opposite result.
Both cases Allstate cites are inapposite, and each undercuts Allstate's argument. In O.K. Lumber, Providence Washington insured two companies that caused property damage to O.K. Lumber. When O.K. Lumber sued the two companies, Providence Washington defended them. In one suit, O.K. Lumber recovered a substantial judgment that exceeded what Providence Washington had unsuccessfully offered to pay. In the other, Providence Washington eventually paid O.K. Lumber's entire claim. O.K. Lumber then sued Providence Washington for bad faith. We held that third parties cannot maintain a cause of action against insurers for bad faith: "An insurer could hardly have a fiduciary relationship both with the insured and a claimant because the interests of the two are often conflicting."
O.K. Lumber is distinguishable because Providence Washington's insureds had not assigned their rights to O.K. Lumber. But we recognized there that " he insured's cause of action for breach of the implied covenant is assignable to the injured third party claimant." Because C.P. is the assignee of the insureds' rights against their insurer, she is suing as a first party, not as a third party. O.K. Lumber therefore supports C.P.'s claim.
Collins is also distinguishable, but nonetheless supports C.P.'s claim. The insured there sued his liability insurer for bad faith failure to provide a defense, and the jury found for the insured. Although we reversed the verdict because a jury instruction had erroneously assumed facts not stipulated, we took pains to reaffirm that "it was proper for the superior court to permit [the insured] to sue on the implied covenant of good faith and fair dealing in tort . . . ."
C.P. refers us to Sauer, in which Delores Gross was sued by residents of her trailer park. She notified her liability insurer, Home Indemnity, which retained Larry Larson, an adjuster with Northern Adjusters. Larson investigated and sent a report to Home Indemnity; Home Indemnity then apparently forgot about the claim. Gross eventually filed for bankruptcy , and sued Larson, Northern Adjusters, and Home Indemnity for "negligent failure to investigate, adjust, resolve or defend" her claim.
Summary judgment was entered against Gross. We reversed, noting: "In [Continental] we recognized that an insurance adjuster owes a duty of care to the insured which is independent of any contractual obligation arising out of the insurance policy, and that a breach of this duty is actionable." But we also noted that "there was no motion before the court concerning the adjusters' liability, separate from that of Home Indemnity, and the record does not otherwise demonstrate the adjusters' right to summary judgment . . . ."
Continental, which involved an adjuster whom we treated as a direct em
Page 1 2 3 4 5 6 7 8 9 10 Alaska Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|