ACE executed a contract for professional services (“the Contract”). The Contract obligates ACE to manage, investigate, adjust, and resolve approximately 180 tort claims, including Montañez’s, pending at the time of exhaustion and all other covered claims reported thereafter. Additionally, the Contract grants ACE the authority to negotiate and settle for up to $25,000 any claim to which the Contract applies. The Contract explicitly states that ACE is not responsible for indemnification payments or service provider fees associated with the relevant claims. Puerto Rico law permits an individual sustaining damages to assert a direct action against a liability insurer. P.R. Laws Ann. tit. 26, § 2003; see also De Leon Lopez v. Corporacion Insular de Seguros, 931 F.2d 116, 122 (1st Cir.1991) (<HOLDING>). An insurer’s liability, however, may not
recognizing puerto rico law creates substantive claim against liability insurer distinct from claim against insured holding that insured may recover from its insurer any attorney fees incurred in successfully attempting to force the insurer to defend an action against the insured holding action by judgment creditor of insured against insurer for bad faith failure to settle claim against insured not a direct action within section 1332c proviso holding that a negligence claim against an insured and a bad faith claim against the insurer are not separate as the first must be proved to prevail on the second recognizing a claim for civil liability against municipalities  under  1983