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TRUCK INS. EXCHANGE v. BISHARA

No. 21646.

916 P.2d 1275 (1996)

128 Idaho 550

TRUCK INSURANCE EXCHANGE, a reciprocal or interinsurance exchange, Plaintiff-Respondent, v. Anis BISHARA and Selma Bishara, husband and wife; Elias Bishara; Bishara's Auto Service, d/b/a American Oil Company, a Maryland corporation, Defendants, and John E. Doty through Michelle Rice, his Conservator; Antoinette Doty, individually and on behalf of the Estate of Richard E. Doty; Cheryl Doty; Andrea D. Doty; and Christopher G. Doty, Defendants-Appellants. Antoinette DOTY and John E. Doty, husband and wife; Cheryl Doty and Christopher G. Doty, minors by and through their natural parent, Antoinette Doty; Andrea D. Doty, individually; Antoinette Doty, for and on behalf of the estate of Richard E. Doty, Counterclaimants-Appellants, v. TRUCK INSURANCE EXCHANGE, a reciprocal or interinsurance exchange; John Does I-X, Counterdefendants-Respondents.

Supreme Court of Idaho.

May 17, 1996.

Attorney(s) appearing for the Case

Hopkins, Roden, Crockett, Hansen & Hoopes, Idaho Falls; O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, Tucson, Arizona, for appellants. Ted A. Schmidt argued.

Cantrill, Skinner, Sullivan & King, Boise, for respondent. Robert D. Lewis argued.

TROUT, Justice.

This is a declaratory judgment action in which Truck Insurance Exchange (Truck) seeks a judicial declaration that it did not act in bad faith in refusing to enter into a settlement agreement with an injured third party.

I.

BACKGROUND

The Dotys purchased an automobile from the Bisharas in 1985 upon which new tires had been installed by Elias Bishara approximately one year earlier. Shortly after purchasing the vehicle, two...

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