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Moradi-Shalal v. Fireman’s Fund Insurance Companies
California Supreme Court
758 P.2d 58 (1988)
Parvaneh Moradi-Shalal (plaintiff) was injured in an automobile accident caused by the negligence of an individual insured by Fireman’s Fund Insurance Companies (Fireman) (defendant). Moradi-Shalal sent evidence of damages to Fireman and requested a settlement. Fireman did not respond, and Moradi-Shalal sent a second request. Fireman again did not respond, and Moradi-Shalal sued the insured. Shortly after filing the lawsuit, Moradi-Shalal settled the claim. Moradi-Shalal then sued Fireman, alleging a Royal Globe action for unfair settlement practices. The trial court dismissed the second lawsuit, determining that Royal Globe required a final judgment in the first action. Moradi-Shalal appealed, and the Court of Appeal reversed. Fireman petitioned the California Supreme Court for review.
Rule of Law
Holding and Reasoning (Lucas, C.J.)
Dissent (Mosk, J.)
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