Multiplex Insurance Agency, Inc. v. California Life Insurance

—On May 24,1983, plaintiff and respondent Multiplex Insurance Agency, Inc., filed a complaint for breach of fiduciary duty, tortious breach of implied covenant of good faith and fair dealing and breach of contract naming appellant California Life Insurance Company as defendant. The complaint was based upon appellant’s refusal to pay respondent certain commissions purportedly due under the contract appointing respondent as a nonexclusive general agent for the sale of appellant’s insurance policies. The jury with two jurors dissenting returned a general verdict in respondent’s favor, awarding respondent $9,377.71 in general damages and $100,001 in punitive damages. Judgment was entered accordingly. Appellant moved unsuccessfully for a new trial and for judgment notwitstanding the verdict. After appellant’s motions were denied, it filed a timely notice of appeal.

Appellant contends on appeal that (1) the law does not recognize a tort cause of action for bad faith in contract cases outside the fields of insurance and wrongful employee discharge; (2) if a cause of action for bad faith is recognized outside the realms of insurance and wrongful discharge, it should not be…