Williams v. Transport Indemnity Co.

*956 Opinion

Introduction

Plaintiff Phyllis Williams appeals in her individual capacity and as the personal representative of the estate of her deceased husband, Jackson Williams, from a summary judgment granted in favor of defendants Transport Indemnity Company and Tod Uresse.

Statement of Facts

On August 4, 1979, the automobile driven by plaintiff’s husband was struck from the rear by a truck owned by Lads Trucking Co., an insured of defendant Transport Indemnity Company. As a result of the collision, Mr. Williams sustained orthopedic and internal injuries.

Mr. Williams made a claim against the defendant insurer, after which defendant paid that portion of the claim relating to Mr. Williams’ property damage. However, defendant did not offer to settle Mr. Williams’ personal injury claim; in fact, after learning that Mr. Williams was suffering from cancer and a heart condition, defendant ceased negotiations related to the personal injury claim.

On January 5, 1980, upon learning that Mr. Williams was about to be hospitalized for his preexisting conditions, as well as his accident-related injuries, defendant resumed contact with Mr. Williams by offering $2,000 in settlement of…

I concur in the majority opinion insofar as it affirms the summary judgment against Phyllis Williams (Mrs. Williams) in her individual capacity, but I respectfully dissent from the affirmance of the summary judgment against Mrs. Williams as the personal representative of the estate of her deceased husband, Jackson Williams.

The purpose of subdivision (h)(5) of section 790.03 of the unfair practices act of the Insurance Code (§ 790 et seq.) is to require that insurance companies attempt in good faith to negotiate prompt, fair settlements once liability has become reasonably clear.

Defendants’ motion for summary judgment against Mrs. Williams as personal representative of the estate of Jackson Williams should have been denied. Liability became reasonably clear as soon as the insurer received and evaluated a copy of the accident report stating the decedent was rear-ended by the insured who was driving with defective brakes and at an excessive speed. Although liability had become reasonably clear, defendants did not attempt to effectuate a prompt, fair settlement of decedent’s personal injury claim. The only settlement offer made to decedent by defendants for decedent’s personal…

Plaintiff Phyllis Williams appeals in her individual capacity and as the personal representative of the estate of her deceased husband, Jackson Williams, from a summary judgment granted in favor of defendants Transport Indemnity Company and Tod Uresse.

On August 4, 1979, the automobile driven by plaintiff's husband was struck from the rear by a truck owned by Lads Trucking Co., an insured of defendant Transport Indemnity Company. As a result of the collision, Mr. Williams sustained orthopedic and internal injuries.

Mr. Williams made a claim against the defendant insurer, after which defendant paid that portion of the claim relating to Mr. Williams' property damage. However, defendant did not offer to settle Mr. Williams' personal injury claim; in fact, after learning that Mr. Williams was suffering from cancer and a heart condition, defendant ceased negotiations related to the personal injury claim.

On January 5, 1980, upon learning that Mr. Williams was about to be hospitalized for his preexisting conditions, as well as his accident-related injuries, defendant resumed contact with Mr. Williams by offering $2,000 in settlement of Mr. Williams' entire…