California Court of Appeal

Brehm v. 21st Century Ins. Co., B198604

In insuree-plaintiff's claim to recover medical expenses from insurer-defendant after serious injuries sustained in a traffic accident, dismissal of the matter is reversed where: 1) the trial court misapplied the genuine dispute rule, which protects an insurer from a bad faith claim when its denial of benefits was asserted in good faith and on reasonable grounds; and 2) neither the express policy provision that authorizes the insurer to arbitrate uninsured motorist (UM) and underinsured motorist (UIM) claims nor Insurance Code section 11580.26, subdivision (b),1 which bars a cause of action for exercising the right to request arbitration of a claim under an insured's UM/UIM coverage, precluded this action based on allegations insurer unreasonably failed to make a good faith effort to obtain a prompt, fair and equitable settlement of plaintiff's claim for UIM benefits.

Appellate Information

• Decided 09/16/2008
• Published 09/16/2008

Judges

• PERLUSS, P.J.

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Law Offices of Gene J. Goldsman, Gene J. Goldsman and Carson C. Newton, Santa Ana;  The Ehrlich Law Firm and Jeffrey Isaac Ehrlich for Plaintiff and Appellant.


• For Appellees:
  
• Horvitz & Levy, David S. Ettinger and Adam M. Flake, Encino;  Crandall, Wade & Lowe and Victor R. Anderson, III, Irvine, for Defendant and Respondent.