Edwards v. Comstock Insurance Co

In Edwards v. Comstock Insurance Co. (1988) 205 Cal. App. 3d 1164, 252 Cal. Rptr. 807, the plaintiff made an uninsured motorist claim. The plaintiff ultimately settled the claim with his insurer and executed a general release of all claims. The plaintiff then sued his insurer for insurance bad faith on the grounds the insurer delayed payment and underpaid his uninsured motorist claim. In opposition to the insurer's motion for summary judgment, the plaintiff argued that plaintiff intended only to release the insurer from the uninsured motorist personal injury claims, and not the insurance bad faith claim. The trial court in Edwards granted the defendant insurer's summary judgment motion on the ground the plaintiff was barred from bringing his civil action pursuant to the general release. The court of appeal affirmed, noting that: "Appellants urge us to interpret the plain language in their release agreements discharging respondents from 'any and all claims, demands, actions and causes of actions' to mean 'all claims except claims for bad faith . . . . Under the circumstances presented here, we decline to rewrite appellants' release agreements to include a concept they failed to enunciate at the time they accepted the terms of the settlement with their insurer." The Edwards court added that: "Because appellants knew they had a claim for unfair practices against respondents, they had a duty to specifically exclude that claim from the release agreement. Otherwise, by releasing 'all' claims, appellants gave the misleading impression that they were abandoning their threatened bad faith action in return for respondents' payment." (Edwards v. Comstock Insurance Co., supra, 205 Cal. App. 3d at p. 1169).