Opinion ID: 1190836
Heading Depth: 1
Heading Rank: 5

Heading: bad faith liability

Text: Appellants assert that the district court erred in giving a bad faith instruction to the jury since they were entitled to judgment, as a matter of law, on the McClellands' bad faith claims. They maintain that the disputed novation should relieve them of any liability for bad faith. However, a jury question on insurer's bad faith arises when relevant facts are in dispute or when facts permit differing inferences as to the reasonableness of insurer's conduct. Duckett v. Allstate Ins. Co., 606 F. Supp. 728, 731 (W.D.Okla. 1985). Moreover, as previously stated, we will not overturn a jury verdict supported by substantial evidence. General Motors Corp. v. Reagle, 102 Nev. 8, 9-10, 714 P.2d 176, 177 (1986). In the instant case, the jury could well have concluded that appellants' claim that a novation occurred was unreasonable in light of United Fire's failure to inform the insureds of its financial difficulties or to investigate the reputation and financial position of California Life. The McClellands could not have consented, even impliedly, to a novation when they lacked knowledge of material facts necessary in making such a determination. Thus, sufficient evidence exists to support the jury's determination that appellants acted in bad faith in denying Kenneth's insurance claims which arose after October 31, 1983.