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In a unanimous opinion which will impact the plaintiff bar’s strategies for “setting up” liability insurers for “failure to settle” bad faith claims, a California appeals court held in
Pinto v. Farmers Ins. Exchange (No. B295742, filed 3/8/21) that a bad faith failure to settle claim requires a finding that the insurer acted unreasonably in some respect. Because the jury verdicts proposed by the plaintiff did not require the jury to make such a finding, the $10 million judgment against the insurer was reversed and judgment is to be entered in its favor.