Alexander Pinto V. Farmers Insurance Exchange

(Bad Faith Verdict Reversed as Plaintiff Failed to Include Instruction Requiring That Insurer Acted Unreasonably in Refusing to Accept Reasonable Settlement Demand)

(April 2021) - In Pinto v. Farmers Ins. Exch., --- Cal.App.5th--- (March 8, 2021), the California Second District Court of Appeal reversed a judgment finding that Farmers Insurance Exchange ("Farmers") acted in bad faith by refusing to accept a reasonable offer to settle a personal injury lawsuit within policy limits. The jury verdict form did not include a finding relative to whether Farmers had acted unreasonably in failing to accept a reasonable offer to settle the underlying claim within policy limits.

The parties' dispute arose out of an automobile accident on March 31, 2013 involving a pickup truck ("truck") roll-over, wherein there were four individuals in the truck. Initially, it was unclear who was driving the truck at the time of the accident. Ultimately, Farmers was able to determine,