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BIRD v. BEST PLUMBING GROUP, LLC

No. 86109-9.

287 P.3d 551 (2012)

James A. BIRD, Respondent, v. BEST PLUMBING GROUP, LLC, Respondent, and Contractors Bonding Insurance Company Bond No. SF3262, Defendant, and Farmers Insurance Exchange, Petitioner. Allstate Insurance Company, as subrogee for James A. Bird, Plaintiff, v. Best Plumbing and Heating, Inc., a/k/a Best Plumbing/Heating Inc., Respondent, and Farmers Insurance Exchange, Petitioner.

Supreme Court of Washington, En Banc.

Decided October 25, 2012.

Attorney(s) appearing for the Case

Jerret E. Sale , Deborah Lynn Carstens , Bullivant Houser Bailey PC, Seattle, WA, Philip Albert Talmadge , Talmadge/Fitzpatrick, Tukwila, WA, Douglas G. Houser , Bullivant Houser Bailey, Portland, OR, for Petitioner.

Andrew James Kinstler , Helsell Fetterman LLP, A. Richard Dykstra , Friedman Rubin , William Candler Smart , Isaac Ruiz , Keller Rohrback LLP, Jeffrey Iver Tilden , Gordon Tilden Thomas & Cordell LLP, Seattle, WA, for Respondent.

Michael Barr King , Justin Price Wade , Carney Badley Spellman , Seattle, WA, for amicus counsel for American Insurance Association, National Association of Mutual Insurance Companies and Property Casualty Insurers Association of America.

Diane Luise Polscer , Gordon & Polscer LLC, Portland, OR, Michael I. Neil , Fed. of Defense & Corporate Counsel, San Diego, CA, amicus counsel for Federation of Defense and Corporate Counsel.

Bryan Patrick Harnetiaux , Attorney at Law, Gary Neil Bloom , Harbaugh & Bloom PS, Spokane, WA, George M. Ahrend , Ahrend Albrecht PLLC, Ephrata, WA, amicus counsel for Washington State Association for Justice Foundation.

FAIRHURST, J.

¶ 1 When an insured defendant believes its insurer is refusing to settle a plaintiff's claims in bad faith, the insured can negotiate an independent pretrial settlement with the plaintiff. These settlements typically involve a stipulated judgment against the insured, a covenant not to execute on that judgment against the insured, and an assignment to the plaintiff of the insured's bad faith claim against the insurer. This is referred to collectively...

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