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PPG INDUSTRIES v. TRANSAMERICA INS. CO.

No. S056618.

84 Cal.Rptr.2d 455 (1999)

975 P.2d 652

20 Cal.4th 310

PPG INDUSTRIES, INC., Plaintiff and Appellant, v. TRANSAMERICA INSURANCE COMPANY, Defendant and Respondent.

Supreme Court of California.

May 10, 1999.

Attorney(s) appearing for the Case

Troop, Meisinger, Steuber & Pasich, Kirk A. Pasich and Lori M. Yankelevits, Los Angeles, for Plaintiff and Appellant.

Haines & Lea, Haines Brydon & Lea, John R. Brydon, Long Beach, James G. Boedecker, San Francisco, and James E. Gibbons, for Defendant and Respondent.

Musick, Peeler & Garrett, Harry W.R. Chamberlain II and Mary Catherine M. Bohen, Los Angeles, for Lawyers' Mutual Insurance Company as Amicus Curiae on behalf of Defendant and Respondent.

Kravit Gass & Weber, J. Ric Gass, Milwaukee, WI; Carroll, Burdick & McDonough and Bertrand LeBlanc II, San Francisco, for American Empire Surplus Lines Insurance Company as Amicus Curiae on behalf of Defendant and Respondent.

KENNARD, J.

In each policy of liability insurance, California law implies a covenant of good faith and fair dealing. This implied covenant obligates the insurance company, among other things, to make reasonable efforts to settle a third party's lawsuit against the insured. If the insurer breaches the implied covenant by unreasonably refusing to settle the third party suit, the insured may sue the insurer in tort to recover damages proximately caused by the insurer...

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