Bad Faith Judgment Against Insurer Reversed by Division I
In a coverage dispute stemming from construction of a custom home, Division I has delivered a victory to Mutual of Enumclaw (MOE). The trial court had concluded that MOE committed bad faith sufficient to estop its coverage denial by disrupting the private arbitration between its insured and the home's owner. Division I's opinion provides guidance on how an insurer defending under a reservation of rights in Washington is allowed to seek information pertinent to coverage without necessarily committing bad faith.