CRISCI V. SECURITY INSURANCE CO. 66 Cal. 2d 425, 58 Cal. Rptr. 13, 426 P.2d 173 (1967) CASE BRIEF

CRISCI V. SECURITY INSURANCE CO.

66 Cal. 2d 425, 58 Cal. Rptr. 13, 426 P.2d 173 (1967)

NATURE OF THE CASE: Security (D) appealed from a judgment awarding damages to Crisci (P) including damages for P's pain and suffering, because D failed to settle a claim which resulted in a judgment that exceeded policy limits.

FACTS: DiMare was a tenant in an apartment building owned by Crisci (P). She fell when a tread on a staircase gave away. She suffered physical injuries and developed a very severe psychosis. DiMare sued P, claiming that P was negligent in inspecting and maintaining the stairs. DiMare claimed that her mental condition was caused by the accident, and asked for $400,000 as compensation for physical injuries, mental injuries, and medical expenses. P had $10,000 of insurance coverage under a policy issued by Security Insurance Co. (D). This policy obligated D to defend the suit against P, and authorized D to make any settlement it deemed expedient. D hired an experienced lawyer, who decided that P would lose a verdict of at least $100,000 if the jury believed that the fall caused the psychosis. However, D still rejected $9,000 and $10,000 settlement offers, offering DiMare only $3,000 for her physical injuries and nothing for mental. The case went to trial, and the jury ruled for DiMare for $101,000. D paid $10,000. P paid the rest, leaving P indigent, and causing a decline in physical and mental health. P sued D for refusing to settle the claim. P received $91,000 for D's refusal to settle and $25,000 for mental suffering. D appealed, claiming that P could not recover unless P proved that D's refusal to settle was based on dishonesty, fraud, or concealment.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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