Vaillette

David A. Vaillette appeals from a judgment of dismissal of his breach of contract/bad faith/fraud action against Fireman’s Fund Insurance Company (Fireman’s Fund). The case was dismissed after the court sustained the insurer’s demurrer to Vaillette’s second amended complaint without leave to amend.

The appeal presents the following issue: When an insurer pays a plaintiff policy limits and the plaintiff covenants not to execute on any judgment against the insured or to assert any further claim arising out of the subject incident, may the plaintiff subsequently recover from the insurer costs of suit, including statutory attorney fees? The answer is no. The subject agreement is not amenable to any reasonable interpretation that would allow the plaintiff to seek further compensation of any nature from the insurer.

Factual and Procedural Background

In March 1984, Vaillette was rendered a quadriplegic and his passenger, James Downing, was killed when a drunk driver, Hugh Robinson, crashed his limousine into the rear end of Vaillette’s vehicle. Vaillette sued Robinson and numerous other defendants. On March 31, 1986, one of Robinson’s insurers, Fireman’s Fund, agreed to pay…