Summary
The Oklahoma Supreme Court affirmed summary judgment for an independent insurance adjuster in a dispute arising from a church's storm-damage claim. The Court held that the adjuster was not subject to the implied covenant of good faith and fair dealing because it was not a party to the insurance contract and did not have a special relationship with the insured. The Court also held that the adjuster owed no independent tort duty to the insured concerning the investigation and adjustment of the claim.
Holdings
- An independent insurance adjuster is not subject to the implied covenant of good faith and fair dealing arising from the insurance contract unless it acts so much like the insurer that a special relationship with the insured arises. Sooner did not meet that standard because it lacked authority to make coverage determinations, did not control benefits or appeals, did not share the insurer's risk, and was not compensated in a manner tied to premiums or claim outcomes.
- An independent insurance adjuster hired by an insurer does not owe the insured an independent legal duty of care concerning investigation or adjustment of the insured's claim and therefore cannot be held liable in tort for negligent or grossly negligent adjustment on these facts.
- Summary judgment for Sooner was proper because the undisputed facts established that Sooner owed Trinity neither the implied covenant of good faith and fair dealing nor an independent tort duty of care.
Questions Presented
- Whether an independent insurance adjuster hired by an insurer owes the insured the implied covenant of good faith and fair dealing when the adjuster is not a party to the insurance contract.
- Whether an independent insurance adjuster owes the insured an independent legal duty of care that permits a tort claim for negligent investigation or adjustment of an insurance claim.
- Whether the trial court properly granted summary judgment to Sooner.
Disposition
affirmed
Cases Cited (31)
- Timmons v. Royal Globe Ins. Co., 1982 OK 97, 653 P.2d 907(followed)
- Christian v. American Home Assurance Co., 1977 OK 141, 577 P.2d 899(followed)
- Gruenberg v. Aetna Ins. Co., 9 Cal. 3d 566, 108 Cal. Rptr. 480, 510 P.2d 1032 (1973)(followed)
- Egan v. Mutual of Omaha Ins. Co., 24 Cal. 3d 809, 620 P.2d 141, 169 Cal. Rptr. 691 (1979)(followed)
- Badillo v. Mid Century Insurance Co., 2005 OK 48, 121 P.3d 1080(followed)
- Wathor v. Mutual Assurance Administrators, Inc., 2004 OK 2, 87 P.3d 559(followed)
- Wolf v. Prudential Ins. Co. of America, 50 F.3d 793 (10th Cir. 1995)(followed_in_part)
- Miller v. David Grace, Inc., 2009 OK 49, 212 P.3d 1223(followed)
- Wathor v. Mutual Assurance Administrators, Inc., 2004 OK 2, 87 P.3d 559(followed)
- Carmichael v. Beller, 1996 OK 48, 914 P.2d 1051(followed)
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Court Document
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