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CLEARWATER v. STATE FARM MUT. AUTO. INS.

Nos. 2 CA-CV 89-0007, 2 CA-CV 89-0008.

161 Ariz. 590 (1989)

780 P.2d 423

Alfred CLEARWATER and Annette Clearwater, husband and wife, as surviving parents of Alfred B. Clearwater, Plaintiffs/Appellees/Cross-Appellants, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant/Appellant/Cross-Appellee.

Court of Appeals of Arizona, Division 2, Department B.

Review Granted September 19, 1989.

Attorney(s) appearing for the Case

Langerman, Begam, Lewis and Marks, P.A. by Thomas F. Dasse, Phoenix, for plaintiffs/appellees/cross-appellants.

O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, P.A. by Scott E. Boehm and Ralph E. Hunsaker, Phoenix, for defendant/appellant/cross-appellee.

OPINION

LACAGNINA, Chief Judge.

This bad faith tort case involves the propriety of refusing to give a "fairly debatable" jury instruction in what is commonly referred to as a "third party claim" and whether the assignee of the insured's claim for bad faith can recover punitive damages from the insurer. Other issues raised by the appeal will be discussed in the body of the opinion.

For the reasons stated below we hold the trial court erroneously refused...

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