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Washington Supreme Court Rejects Insurer Challenge to Covenant Judgments
Friday, October 26, 2012

This morning, in Bird v. Best Plumbing Group, Inc. (.pdf),  the Washington Supreme Court rejected Farmer’s challenge to the now longstanding use of covenant judgments to establish the presumptive measure of damages for bad faith claims against liability insurers. Farmer’s argued that the Washington Constitution entitles insurers to have the reasonableness of the settlement determined by a jury. Writing for a 6-3 majority, Justice Fairhurst reasoned that a reasonableness hearing under RCW 4.22.060 is an equitable proceeding and, therefore, does not require a jury trial. 

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