Does a plaintiff have to expressly reserve their rights before they can bring a bad faith action against the insurer?

California, United States of America


The following excerpt is from Moradi-Shalal v. Fireman's Fund Ins. Companies, 201 Cal.App.3d 1122, 226 Cal.Rptr. 333 (Cal. App. 1986):

The issue of whether Rodriguez requires a settling plaintiff to expressly reserve her rights before she can bring a subsequent bad faith action against the insurer, was addressed by this court in Trujillo v. Yosemite-Great Falls Ins. Co. (1984) 153 Cal.App.3d 26, 28-29, 200 Cal.Rptr. 26, but only in the narrow context of facts distinguishable from Rodriguez. Even so, we concluded that the trial court erred in failing to allow the plaintiff therein to amend so as to bring that case within Rodriguez if he were able to do so.

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