Kransco v. American Empire Surplus Lines Ins.

Full title: KRANSCO, Appellant, International Insurance Company et al., Respondents…

Court: Supreme Court of California

Date published: Aug 20, 1997

67 Cal. Rptr. 2d 167 (Cal. 1997)

942 P.2d 414

Opinion

S062139

August 20, 1997

Prior report: Cal.App., 63 Cal.Rptr.2d 532.

Petition for review GRANTED.

The issues to be argued before this court shall be limited to (1) Whether an insurer may assert an affirmative defense of the insured's comparative bad faith in a bad faith action brought against the insurer and (2) Whether California public policy prevents the recovery of punitive damages awarded against the insured in the underlying action as consequential damages in the bad faith action against the insurers where the underlying action was decided in a foreign jurisdiction permitting indemnification of punitive damages.

Submission of additional briefing on the second issue is deferred pending further order of the court.

GEORGE, C.J., and KENNARD, BAXTER, WERDEGAR, CHIN and BROWN, JJ., concur.