Opinion ID: 1444079
Heading Depth: 1
Heading Rank: 4

Heading: may an injured member of the public bring an action for bad faith on a public liability insurance contract?

Text: ¶ 19 All parties here have agreed that an insurance company owes a duty of good faith to a party to the contract of insurance. It is from this contractual relationship, or in some cases a statutory requirement, that the duty of good faith arises. McWhirter v. Fire Ins. Exchange Inc., 1994 OK 93, 878 P.2d 1056 (Okla.1994); Gianfillippo v. Northland Cas. Co., 1993 OK 125, 861 P.2d 308 (Okla.1993); Allstate Ins. Co. v. Amick, 1984 OK 15, 680 P.2d 362 (Okla.1984). Without this relationship an action for bad faith must fail: In Allstate Ins. Co. v. Amick , we held the injured third party could not maintain an action against the tortfeasor's insurer for bad faith negotiations and for failure to settle claims fairly and in good faith. We said that such an action by an insured against its insurer is allowed because of the implied duty of good faith and fair dealing recognized in that relationship. The duty arises from the contractual relationship between the insurer and the insured. Third parties are strangers to the contract. Absent a contractual or statutory relationship, there is no duty.  McWhirter, 878 P.2d at 1058 (footnotes omitted; emphasis in original). ¶ 20 Here, we have held that Hoar is not a third party beneficiary to the contract. The Department of Transportation regulations are specific in this regard; no third party beneficiary status is created by the issuance of a public liability insurance policy. The Competitive Bidding Act does not create a statutory relationship between Hoar, the injured third party, and Aetna, the insurer. The case law is clear and consistent. Allstate v. Amick, supra. We affirm once more that absent a statutory or contractual relationship an injured party may not maintain a bad faith action against a public liability insurer. ¶ 21 The certified questions are answered. ¶ 22 SUMMERS, V.C.J., HODGES, LAVENDER, ALMA WILSON, WATT, JJ., concur. ¶ 23 KAUGER, C.J., OPALA, J., concur in part and dissent in part. ¶ 24 SIMMS, HARGRAVE, JJ., concur in parts 1, 3 and 4; dissent from part 2.