No Tort Remedy for Non-Insurance Claims Bad Faith -2
Some courts allow recovery for actions in bad faith that are not part of the insurance relationship. In Coleman v. Republic Indemnity Insurance Co. of California, the California Court of Appeal found that an insurer owes no duty of good faith and fair dealing to a third party claimant, even if the insurer coincidentally insures the third party claimant. The plaintiffs were insured by coincidentally insures the third party claimant. The plaintiffs
were insured by Republic Insurance Company and were involved in a traffic accident with the defendant, Jesus Gonzalez, who was insured by Infinity Insurance Company. Infinity is Republic’s parent company. Infinity allegedly advised plaintiffs that the statute of limitations would expire one year after the traffic accident.
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