Kelly

This is an appeal from a summary judgment in favor of respondent Farmers Insurance Exchange (Farmers) in appellant George Kelly’s action seeking damages for bad faith refusal to settle a claim for personal injuries caused by Farmers’ insured. We reverse the judgment.

Statement of the Case

This appeal is part of the aftermath of a 1977 accident which injured appellant Kelly. Our statement of the facts is drawn in part from another appeal which resulted from the same accident, United Pacific-Reliance Ins. Companies v. Kelly (1983) 140 Cal.App.3d 72 , at page 74 [ 189 Cal.Rptr. 323 ]. Appellant was severely injured when he was struck by an automobile owned and driven by an unlicensed motorist, P. Megij. R. Hernandez, a passenger in the car, was giving driving lessons to Megij. When the accident occurred, appellant was standing near his own automobile loading tools into the back of his employer’s truck. Appellant was crushed from the waist down. He sustained leg injuries which will require him to wear a brace for the rest of his life. As a result of his injuries, he incurred medical expenses in excess of $20,000 and lost wages of over $25,000.

Passenger Hernandez was…