Cannon then sued Safeco, arguing that the insurer had acted in bad faith by filing the interpleader and surrendering the policy limits without trying to negotiate a release on his behalf. By doing so, Cannon contended, Safeco removed any incentive for claimants to settle with him within the policy limits. He also alleged that Safeco breached its contract by providing an inadequate defense, claiming the insurer forced its appointed lawyers to work on a shoestring budget. The complaint alleged that when one of the attorneys recommended hiring an accident-reconstruction expert who had already given favorable opinions in Cannon’s criminal case, a Safeco agent vetoed the idea, reasoning that there was not much more to be done since the policy limits had already been paid. Cannon further alleged that Safeco failed to interview a key witness who would have supported his account of being cut off by the unknown driver. On top of that, Cannon claimed Safeco refused to pay for an appeal bond, despite the policy containing a provision requiring the insurer to pay premiums on appeal bonds in any suit it defends.
