Taylor ex rel. Green v. Sentry Group of Companies

MEMORANDUM *

Lloyd Taylor appeals from the district court’s grant of summary judgment in favor of Sentry Group of Companies (“Sentry”). Taylor was severely injured in an automobile accident caused by the negligence of Sentry’s insured, Larry Green. Taylor’s medical expenses alone exceeded $200,000, and Green’s policy limit was $25,000. Taylor asks us to reverse the district court’s decision that Sentry did not act in bad faith by failing to pursue settlement above the policy limit. We have jurisdiction under 28 U.S.C. §§ 1291 and 1332, and we affirm.

Under Washington state law, “[wjhether an insurer acted in bad faith is a question of fact.” Smith v. Safeco Ins. Co., 150 Wash.2d 478 , 78 P.3d 1274, 1277 (2003) (en banc). An insurer is therefore entitled to a dismissal on summary judgment “if there are no disputed material facts pertaining to the reasonableness of the insurer’s conduct under the circumstances.” Id. Alternatively, the insurer is entitled to prevail if, on the facts construed most favorably to the nonmoving party, the insurer acted reasonably as a matter of law. Id.

The facts are undisputed. Sentry tendered its policy limits to Taylor on three occasions, and…