Hughes

Defendant Mid-Century Insurance Company appeals a portion of the judgment favoring plaintiff Gary Hughes on his third party complaint against Mid-Century for benefits under its liability insurance policy issued to Hughes’s judgment debtor. Mid-Century contends the superior court erred in concluding the policy’s language involving supplementary cost payments was ambiguous and thus entitled Hughes to recover costs he incurred in his suit against Mid-Century’s insured. We strike that portion of the judgment.

Hughes appeals the portion of the judgment sustaining without leave to amend Mid-Century’s demurrer to his claim for breach of the implied covenant of good faith and fair dealing. Hughes contends the superior court should have concluded he adequately pleaded a bad faith cause of action based upon Mid-Century’s asserted wrongful withholding of insurance benefits from Hughes after Hughes obtained a judgment against Mid-Century’s insured. We affirm that portion of the judgment.

I

Introduction

While insured by Mid-Century, Phillips was involved in a motor vehicle accident with Hughes. Hughes obtained a judgment against Phillips exceeding Mid-Century’s policy limits. The…