Priscilla Young, Plaintiff-Appellant v. Allstate Insurance Company, a Foreign Corporation, Mark T. Ichiyama, And…

Summary

The Hawai'i Supreme Court affirmed the circuit court's dismissal of Priscilla Young's abuse of process, malicious defense, and assumed-duty-of-good-faith-and-fair-dealing claims against Allstate Insurance Company and its staff counsel Mark Ichiyama, while vacating the dismissal of her intentional infliction of emotional distress (IIED) claim and remanding for further proceedings. It overruled Wong v. Panis in part—holding that use of process for a proper purpose does not make that purpose primary—but concluded the complaint failed to allege a willful act distinct from the use of process itself; it declined to recognize a tort of malicious defense in light of chilling effects on vigorous defense and adequate existing remedies; and it found no contract, hence no implied duty, arising from Allstate's Quality Service Pledge absent consideration or detrimental reliance. On IIED, it concluded reasonable people could differ whether Allstate's conduct—pledging 'quality service' to an elderly, unrepresented claimant while offering $5,300 against known liability and over $6,000 in medical expenses, then forcing an arbitration appeal and trial—was beyond all bounds of decency, leaving outrageousness to the jury. Justice Levinson, joined by Justice Acoba, concurred in part and dissented in part: he agreed with the disposition of the other three claims but would have recognized the Aranson malicious-defense tort and vacated the judgment on that claim as well.