LIBERTY TRANSPORT, INC., Plaintiff and Respondent, v. HARRY W. GORST COMPANY, INC., and Insurance Companies, Defendants and Appellants.
Insured brought action against insurers and broker to recover for unfair settlement practices, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, and fraud in connection with denial of claim for loss of truck trailer which disappeared along with insured's driver. The Superior Court, Los Angeles County, No. C541632, Macklin Fleming, J., entered judgment on jury verdict in favor of insured. Insurers and broker appealed. The Court of Appeal, Johnson, J., held that: (1) cause of action against insurers for unfair settlement practices is “liability created by statute” within meaning of three-year statute of limitations for action upon liability created by statute; (2) evidence supported conclusion that insurers and broker unreasonably and unjustifiably delayed communicating denial of claim; and (3) award of punitive damages was permissible. Complaint against insurers and broker did not relate back to the filing of original complaint against different insurers and broker and...