Hedlund

FINDINGS OF FACT AND CONCLUSIONS OF LAW

This is a declaratory relief action that involves a policy of automobile liability insurance, Policy No. 40856-3594, issued by METROPOLITAN PROPERTY AND CASUALTY INSURANCE COMPANY (“MET”). MET was and is, at all times pertinent to this action, an insurance company authorized to do business in the state of California. Defendants are DANIEL SAH (“SAH”), a named insured under the subject MET automobile policy, SARAH MARIE HEDLUND (“HEDLUND”), who was insured under the auto policy as a permissive user of SAH at the time of the underlying September 21, 2012 motor vehicle accident, (collectively the “insureds”) as well as SCOTT MAGNUSON (“MAGNU-SON”), who was injured as a result of said accident. Having presided over a one (1) day bench trial, the Court now concludes that MET failed to properly discharge the duties of good faith and fair dealing it owed its insureds. The Court bases that conclusion on the manner in which MET handled a letter from MAGNUSON (the “Magnuson Letter”) demanding disclosure of the policy limits and seeking to effectuate a settlement within those limits. Because the Court finds that MET acted in bad faith in responding to…