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SAFECO INS. CO. OF AMERICA v. SIMS

81-555.

435 So.2d 1219 (1983)

SAFECO INSURANCE COMPANY OF AMERICA v. Betty Vines SIMS, et al.

Supreme Court of Alabama.

Rehearing Denied August 5, 1983.

Attorney(s) appearing for the Case

Charles A. Stewart, Jr. and Frank E. Lankford, Jr. of Huie, Fernambucq, Stewart & Smith, Birmingham, for appellant.

Frank O. Burge, Jr. of Burge & Florie, Birmingham, for appellee.

FAULKNER, Justice.

This is an appeal from a judgment in favor of William E. Sims in the amount of $30,000.00, and in favor of Betty V. Sims in the amount of $75,000.00, against Safeco Insurance Company of America (Safeco) in a bad faith tort action. We reverse and render on the ground that the insureds' failure to file a counterclaim in a prior declaratory judgment action bars the instant tort claim for bad faith.

Safeco issued a policy of automobile insurance...

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