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HOWARD v. STATE FARM MUT. AUTOMOBILE INS. CO.

No. 406.

60 Wis.2d 224 (1973)

208 N.W.2d 442

HOWARD, Receiver of the assets of Caren Pfeffer, Appellant, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Respondent.

Supreme Court of Wisconsin.

Decided June 29, 1973.

Attorney(s) appearing for the Case

For the appellant there were briefs by Warshafsky, Rotter & Tarnoff, S. C., attorneys, and Alan E. Gesler of counsel, all of Milwaukee, and oral argument by Mr. Gesler.

For the respondent there was a brief by Otjen, Philipp & McFadyen, attorneys, and Ernest J. Philipp and William C. Whitten of counsel, all of Milwaukee, and oral argument by Ernest J. Philipp.

BEILFUSS, J.

The plaintiff-appellant receiver alleges that claim adjusters and the attorney for State Farm were negligent and acted in bad faith in the handling of the Toomey claim and in their representation of Caren Pfeffer.

When, as here, the insurer undertakes and controls the defense of a claim against its insured, it has a duty not only to protect itself to the extent of its liability but it must act in good...

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