Seretti

Appellants Phillip Seretti and Janja Vujovich contend on appeal that respondent Superior National Insurance Company, the workers’ compensation carrier for their wholly owned corporation, was liable to them individually for failing to defend actions brought as the result of injury to two of the corporation’s employees and for entering into a settlement with the employees which was adverse to the interests of the insured. We agree with the trial court that appellants lack standing to assert a claim against respondent for bad faith insurance practices, and affirm.

Factual and Procedural Background

The Civil Complaints

In June of 1994, Shawn, Debbie, Donna, and Dorian Lobina and Darlene Smith (hereafter the Lobinas) brought suit against appellant Seretti for negligence and wrongful death in connection with a fatal injury to their father, Louis Lobina. Seretti and his wife, appellant Vujovich, owned real property on Floye Street in Hollywood on which the decedent was working at the time of the accident. The complaint alleged that Seretti and the Doe defendants negligently “controlled their premises” and “the construction being performed thereon”; negligently “failed to hire…