Kirk v. Allstate Insurance

Motorcyclist was struck by driver of automobile owned by another person, resulting in leg amputation. Vehicle owner's insurer failed to notify driver of notice of suit, and did not provide driver with attorney until one year after suit filed. Jury verdict of $1.375 million against driver, with $100,000 setoff for policy limits paid by vehicle owner's insurer. Plaintiff nogoiated settlement with driver's own insurer and obtained assignment of rights from driver to sue vehicle owner's insurer for bad faith. Insurer filed bad faith claim against Plaintiff. Whether Plaintiff induced release is irrelevant; Plaintiff, as assignee, stands in driver's shoes, and insurer is not relieved of its duty to driver. Genuine issues of material fact exist as to bad faith, as insurer did not inform driver of settlement negotiations or that it was excluding him from release, or that he could be held personally responsible for excess. (WELCH and SPOMER, concurring.)