O'Keefe v. Safeco Insurance Co. of America

In O'Keefe v. Safeco Insurance Co. of America, 55 Ore. App. 811, 639 P.2d 1312 (Or. App. 1982), the insured filed a bad faith action against her insurer based upon defense counsel's conduct in defending the insured in a personal injury case. Specifically, the insured argued that defense counsel: (a) failed to take the plaintiff's deposition; (b) failed to obtain the plaintiff's medical records; (c) failed to obtain the plaintiff's financial records; (d) failed to take the deposition of the plaintiff's doctors; (e) failed to secure adequate medical consultation for the benefit of the insured. A jury returned a verdict for the insured, and the insurer appealed. The appellate court found that a cause of action could be maintained against the insurer for defense counsel's conduct. However, the appellate court reversed the verdict based upon an erroneous jury instruction. In remanding the case for a new trial the appellate noted that "there was . . . adequate evidence of the insurer's negligence." O'Keefe, 639 P.2d at 1315.