Bad Faith Blog
April 15, 2011
To Repair or Not Repair – That Is the Question
SUMMARY: California appeals court finds insurer breached its duty of good faith and fair dealing when it pursued a subrogation action against a tortfeasor to recover the cost of repairs after the insured had not authorized repairs or pursuit of the subrogation action. Hibbs v. Allstate Insurance Company. 2011 WL 1485623 (Cal.App. 2 Dist.)) The Hibbs’ vehicle, which was insured by Allstate, was damaged when it was struck by Brooks. Hibbs towed the vehicle to a body shop and contacted Allstate. The Hibbs informed Allstate’s claims adjuster that they believed the vehicle was a total loss.