Archdale

The plaintiffs and appellants Cheryl and Donald Archdale and George Godinez seek reversal of a summary judgment entered in favor of the respondent, American International Specialty Lines Insurance Company (AIS), on plaintiffs’ complaint for breach of contract and breach of the implied covenant of good faith and fair dealing.

The Archdales had sued Godinez and others in the underlying action for damages for personal injuries arising out of a multiple vehicle accident. Godinez and his employer were covered under a liability policy issued by AIS with a coverage limit of $500,000. In this action, plaintiffs allege that AIS failed to accept multiple reasonable settlement offers that were within AIS’s aforesaid policy limit. AIS provided a defense to the underlying action which went to trial and resulted in a judgment in favor of the Archdales and against Godinez and his employer in the sum of $1,269,000.

The complaint in this action was filed on September 12, 2003, and sought recovery in both contract and tort. AIS moved for summary judgment, arguing that since the original judgment in the underlying action had been entered on May 3, 1999, the applicable statutes of…