7:2 Aiding and Abetting

• Jurisdiction: Arizona

§ 7:2 Aiding and Abetting

Aiding and abetting occurs when: (1) a third party engages in conduct for which he or she could be liable to the plaintiff in tort; (2) the defendant was aware the third party was going to engage in such conduct; and (3) the defendant provided substantial assistance or encouragement with the intent of promoting the conduct.^[284]

In Chalpin v. Snyder,^[285] an insured driver struck another driver’s car and the other driver was injured severely enough to go into a vegetative state. The insurance company refused a patently reasonable settlement offer, acknowledged in internal memoranda that they were probably facing a bad faith issue, but nonetheless sought to deny coverage.^[286] They hired attorney Snyder, who initially determined they were liable for coverage, but under pressure from the insurer, agreed to help them deny coverage.^[287] He suggested they sue the client under all possible theories to deny coverage and they did, with very little basis for their claims and took the case to trial.^[288]

The insurer lost at trial, attorneys fees were awarded against the insurer and the insurer paid none of them and declared bankruptcy.^[289] The plaintiff then brought suit against Snyder for aiding and abetting.^[290] Snyder cited Linder v. Brown & Herrick,^[291] for the proposition that only malicious prosecution and abuse of process claims could be brought by plaintiffs against opposing attorneys.^[292] The trial court agreed and dismissed...