The automobile insurer intervened at which time the parties stipulated that $4.15 million was the reasonable total net amount of the covenant judgment that remained unpaid after the passengers received the $1.8 million insurance proceeds. The parties executed a settlement agreement by which the insured agreed to pay $1.8 million in insurance proceeds to the passengers, to enter a reasonable covenant judgment, and to assign to one of the passengers, the insured driver’s rights to sue the insurer for bad faith and related claims. In Miller, three automobile accident victims (passengers) sued the insured driver. One of those interesting issues can be seen in the Washington Court of Appeals decision of Miller v. Courts in the State of Washington always present interesting appellate issues in the bad faith context.
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