Wayne Beck, Plaintiff and Appellant v. Farmers Insurance Exchange, Defendant and Respondent

Summary

The court held that an insured may sue in contract when an insurer fails to investigate, evaluate, bargain over, or settle a first-party claim in good faith, but may not ordinarily sue in tort for that contractual breach. The court further held that consequential damages beyond policy limits, including mental-anguish damages in unusual and foreseeable circumstances, may be recoverable. Because the record supported an inference that the insurer rejected the claim without investigation or explanation and delayed resolution, summary judgment was improper and the case was remanded.