ARBITRATION AWARD JUDGMENT NOT RES JUDICATA, PRECLUDES NO EXTRACONTRACTUAL CLAIMS.

Res judicata was no defense to bad faith and statutory unfair claim handling claims in Fortson-Kemmerer v. Allstate Ins. Co., 198 Wash. App. 387, 393 P.3d 849 (Ct. App., Div. 3, 2017).  The defendant underinsured motorist (UIM) carrier tried to preclude these claims with an earlier final judgment that was entered in favor of its policyholder after she successfully arbitrated her underlying UIM claims.

The arbitration did not preclude her bad faith claims, the Court held.  The arbitration was on coverage issues and damages covered by UIM.  "In this case, [the UIM carrier] will defend in a quasi-fiduciary role," the appellate court ruled.

Please Read The Disclaimer.  ©2017 by Dennis J. Wall.  All Rights Reserved.