Barickman

McDaniel, driving while intoxicated in a car insured by Mercury Casualty Company, ran a red light, and stmck and seriously injured Laura Beth Barickman and Shannon Mclnteer, who were in a crosswalk with the walk signal in their favor. Barickman and Mclnteer agreed to settle their claims against Timory for her insurance coverage limits, $15,000 each, but Mercury would not agree to additional language inserted by Barickman and Mclnteer’s lawyer in Mercury’s form release of all claims: “This does not include court-ordered restitution.” After Barickman and Mclnteer sued Timory and settled the case with a stipulated judgment for $3 million, Timory assigned her rights against Mercury to Barickman and Mclnteer, who filed this action for breach of contract and breach of the implied covenant of good faith and fair dealing. Following a trial by reference, judgment was entered in favor of Barickman and Mclnteer for $3 million plus interest from the date of judgment in the personal injury action. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

1. The Accident and Claim Processing

During the early morning hours on July 11, 2010, Timory entered the intersection of Pacific Coast Highway…