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HOVET V. LUJAN, 2003-NMCA-061, 133 N.M. 611, 66 P.3d 980
JANE HOVET, Plaintiff-Appellant,
vs.
STEVEN LUJAN, ARTHUR LUJAN, Defendants, and ALLSTATE
INSURANCE COMPANY, Defendants-Appellees.

Docket No. 22,276
COURT OF APPEALS OF NEW MEXICO
2003-NMCA-061, 133 N.M. 611, 66 P.3d 980
February 19, 2003, Filed
APPEAL FROM THE DISTRICT COURT OF BERNALILLO COUNTY. Theodore C. Baca, District Judge.
As Corrected April 25, 2003. Released for Publication April 11, 2003. Certiorari Granted, No. 27,969, April 7, 2003.
COUNSEL
Thomas L. Grisham, Grisham & Lawless, P.A., Albuquerque, NM, for Appellant.  
David W. Frizzell, Simone, Roberts & Weiss, P.A., Albuquerque, NM, for Appellees.  
David J. Berardinelli, Berardinelli & Associates, Santa Fe, NM, William H. Carpenter, Carpenter & Chavez, Albuquerque, NM, for Amicus Curiae New Mexico Trial Lawyers Association.  
Ann Maloney Conway, Deron B. Knoner, Huffaker & Conway, P.C., Albuquerque, NM, for Amicus Curiae New Mexico Defense Lawyers' Association.

JUDGES
A. JOSEPH ALARID, Judge. WE CONCUR: JAMES J. WECHSLER, Chief Judge, MICHAEL D.
BUSTAMANTE, Judge. AUTHOR: A. JOSEPH ALARID

OPINION
{*612} ALARID, Judge.
{1} This case requires us to decide whether the public policy of New Mexico supports a direct private cause of action in favor of third-party claimants against automotive liability insurers who refuse to make good faith efforts to settle claims against their insureds. We hold that such a claim exists under the unfair claims practices provisions of the Insurance Code.  

PROCEDURAL HISTORY
{2} On February 20, 1997, Plaintiff-Appellant, Jane Hovet, filed a complaint against Steven and Arthur Lujan (Defendants) alleging that she had been injured as the result of being "struck from behind at high speed by [a] vehicle owned by Defendant Arthur Lujan and being negligently driven by Defendant Steven Lujan for a family purpose." Plaintiff also alleged that  
   as a direct and proximate result of the negligent operation of the vehicle by Defendant
Steven Lujan, Plaintiff Hovet was severely injured and incurred severe damages to her
vehicle and loss of personal property destroyed in the accident; incurred medical, hospital
and other doctor bills; will incur future medical bills, including those for an eventual
surgery at some future time; suffered loss of enjoyment of her normal daily activities; is
unable to perform her ordinary household services; and suffered lost wages and lost
earning capacity. Plaintiff Hovet also suffered great pain of body and mind, mental
anguish and distress, permanent disability/impairment, and will continue to suffer these
into the future.  
{3} In July 1997, Plaintiff moved for summary judgment on the issue of Defendants' liability. Plaintiff attached a portion of Steven Lujan's deposition where he describes how he had driven his car into the rear of Plaintiff's car. At the September 22, 1997 hearing on Plaintiff's motion, Defendants admitted liability.  
{4} On March 22, 1999, the trial court granted Plaintiff leave to file an amended complaint joining Defendants' liability insurer, Allstate Insurance Company (Allstate). Plaintiff's amended complaint repeated her allegations against Defendants, and in addition, alleged that at the time of the accident Defendants were insured by Allstate; that pursuant to the New Mexico Mandatory Financial Responsibility Act, Defendants' automobile liability insurance was for the benefit of the general public, including victims of automobile accidents; that Allstate owed a duty of good faith and fair dealing to Plaintiff as a third-party beneficiary of Defendants' policy; that Allstate had breached its duty of good faith by refusing to "mediate, resolve and settle" her action against Defendants; and, that Allstate's actions were in violation of NMSA 1978,

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