Pon

Plaintiff and appellant Helen Liang Pon (Pon) appeals the judgment of dismissal entered after the trial court granted summary judgment in favor of defendant and respondent Fremont Indemnity Company (Fremont).

Because Pon’s settlement of an appeal taken from a judgment entered in the underlying action did not preclude a final judicial determination of Fremont’s insured’s liability, the trial court erroneously dismissed Pon’s insurance bad faith suit against Fremont pursuant to Moradi-Shalal v. Fireman’s Fund Ins. Companies (1988) 46 Cal.3d 287 [ 250 Cal.Rptr. 116 , 758 P.2d 58 ].

Factual and Procedural Background

In the lawsuit underlying this action, Pon sued Kok-Po Ng, Grand Pacific International Ltd. (collectively, Ng), and others for damages arising *31 out of a real estate transaction. Fremont insured Ng and provided a defense. After a trial, the jury returned a special verdict in favor of Pon and against Ng. The trial court entered judgment accordingly.

Ng appealed the judgment in favor of Pon and while that appeal remained pending, Ng and Pon entered into a “Settlement Agreement” and “General Release” pursuant to which Ng agreed to pay Pon $350,000. Pon executed…