Granados v. Wilson

Summary

The court held that an insurer handling a third-party liability claim owes broad implied contractual duties of reasonable care and good faith, not a separate legal duty to settle triggered by a particular event. Whether conduct involving investigation, communication, evaluation, or settlement breaches those duties is generally a fact question. The court nevertheless affirmed the Court of Appeals' reversal because Granados failed to prove that Key's breach caused the excess judgment, and it directed the district court to enter judgment for Key.