9th Circuit: 3rd Party’s Underlying Judgment Did Not Confer Bad Faith Standing

SAN FRANCISCO – The fact that a claimant in an underlying personal injury lawsuit achieved a judgment in his favor does not automatically assign him interest to sue the tortfeasor’s insurer for bad faith, a Ninth Circuit U.S. Court of Appeals panel ruled June 30, affirming a lower court’s summary judgment for the insurer (Ernest Hicks, et al. v. Dairyland Insurance Co., et al., No. 10-15650, 9th Cir.; 2011 U.S. App. LEXIS 13419).
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