Judge: Insurer Did Not Act In Bad Faith In Failing To Defend Insured In Suit

Mealey's (April 22, 2019, 11:55 AM EDT) -- SAN DIEGO — Because an insurer did not breach its contract with its insured under the terms of a business insurance policy by failing to defend the insured in a third-party lawsuit, the insured’s claim for breach of the implied duty of good faith and fair dealing “necessarily fails,” a federal judge in California ruled April 10 in granting the insurer’s motion for summary judgment (By Referral Only Inc. v. Travelers Property Casualty Co. of America, No. 18-1695, S.D. Calif., 2019 U.S. Dist. LEXIS 62040)....