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DVORAK v. AMERICAN FAMILY MUT. INS. CO.

Civ. No. 930075.

508 N.W.2d 329 (1993)

Kim DVORAK, Al Dvorak and Betty Dvorak, Plaintiffs and Appellants, v. AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Defendant and Appellee.

Supreme Court of North Dakota.

November 9, 1993.

Attorney(s) appearing for the Case

Lynn M. Boughey (argued), Minot, for plaintiffs and appellants.

McGee, Hankla, Backes & Wheeler, Ltd., Minot, for defendant and appellee; argued by Richard H. McGee.

LEVINE, Justice.

In this case, we decide that an insurer's duty to its policyholders to negotiate a settlement of a potential claim in good faith and with fair dealing does not extend to injured third parties with potential claims against insureds. Accordingly, we affirm the summary judgment dismissing the claims of Kim Dvorak and her parents, Al and Betty Dvorak, against American Family Mutual Insurance Company (American).

Kim was injured on October 14, 1989...

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