Can a plaintiff continue to receive damages for mental distress as a result of an insurer's wrongful failure to settle their claim?

California, United States of America


The following excerpt is from Sprague v. Equifax, Inc., 166 Cal.App.3d 1012, 213 Cal.Rptr. 69 (Cal. App. 1985):

Moreover, decisional authority supports the continuation of damages for mental distress where, as here, compensation for an economic loss is not finally settled. In Fleming v. Safeco Insurance Co. (1984) 160 Cal.App.3d 31, 38-39, 206 Cal.Rptr. 313, this court held that there was substantial evidence to support an award of compensatory damages for emotional distress as a result of an insurer's wrongful failure to settle, where plaintiff suffered worry and anxiety as a result of anticipating an arbitration hearing.

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