5.2.3 When Does the Duty to Give Equal Consideration Arise?

• Jurisdiction: Arizona

The question of when the duty to give equality of consideration arises was addressed by the court in Fulton v. Woodford.^[177] In Fulton, the claimant's attorney never made a firm offer to settle the claim within the carrier's policy limits, nor did the insured demand that his carrier settle the claim. On appeal, the carrier argued that the duty to give equality of consideration arises only when there has been a firm offer to settle originating from the injured claimant.^[178] On the other hand, the insured in Fulton argued that an insurance carrier has a positive fiduciary duty to take the initiative and attempt to negotiate settlement within the carrier's policy limits.^[...