In Bird v. Best Plumbing Group, LLC and Farmers Insurance Exchange, Wash. No. 86109-9 (October 25, 2012), the Washington Supreme Court held that: (1) insurers have no constitutional right to a jury determination of whether covenant judgments are reasonable and (2) due process is not violated when the presumptive amount of damages in a future bad faith action is set at a reasonableness hearing without a jury following five days’ notice to the insurer.

The Underlying Facts -

The underlying case in Bird arose after an employee of Best Plumbing Group, LLC (Best Plumbing), cut a pressurized sewage pipe, causing sewage to escape into the home of James Bird. This sewage burst occurred just as Bird returned to his home, with sewage entering his eyes, nostrils and mouth. Efforts to repair the pipe were not successful and sewage continued to escape for eight months, resulting in hillside instability and toxic mold. Bird suffered a heart attack he attributed to the stress of physically removing sewage-laden material from his property.