Himes v. Safeway Ins. Co
In Himes v. Safeway Ins. Co., 205 Ariz. 31, 36-37, P 12, 66 P.3d 74, 79-80 (App. 2003), the Court discussed what evidence would be relevant to determining whether a stipulated judgment entered pursuant to a settlement between an insured and a third party was reasonable after the insurer allegedly breached its duty of equal consideration.
The Court stated the "key test" was "whether the evidence would assist the reasonably prudent person, acting as though the person were dealing with sufficient funds from his or her own pocket, in determining what a reasonable settlement amount would have been." 205 Ariz. at 42-43, P 37, 66 P.3d at 85-86. We identified a number of non-exclusive factors:
The releasing person's damages; the merits of the releasing person's liability theory; the merits of the released person's defense theory; the released person's relative faults; the risks and expenses of continued litigation on the merits; . . . any evidence of bad faith, collusion, or fraud; the extent of the releasing person's investigation and preparation of the case; and the interests of the parties not being released. Id. at 42, P 33, 66 P.3d at 85.