“Tort damages are ‘the amount which will compensate for all the detriment proximately caused thereby, whether it could have been anticipated or not.’” Id. at 913 (quoting Cal.Civ.Code § 3333). Otherwise, Plaintiffs are only entitled to contract damages for breach of State Farm’s contractual duty to defend. See id. at 912. 1. Duty to Settle California’s “implied covenant good faith and fair dealing imposes a duty on the insurer to settle a claim against its insured within policy limits whenever there is a substantial likelihood of a recovery in excess of those limits.” Johansen v. Cal.State Auto. Ass’n Inter-Ins. Bureau, 15 Cal.3d 9, 123 Cal.Rptr. 288, 538 P.2d 744, 747 (Cal.1975); Crisci v. Sec. Ins. Co. of New Haven, Conn., 66 Cal.2d 425, 58 Cal.Rptr. 13, 426 P.2d 173, 176 (Cal.1967) (<HOLDING>). The California Supreme Court explained that
holding that an agent as a stranger to an insurance contract cannot be held to breach an implied covenant of fair dealing holding that liability based on an implied covenant exists whenever the insurer refuses to settle in an appropriate case recognizing implied covenant to market gas holding that an insurer has a duty to conduct an investigation reasonably appropriate under the circumstances holding the insurer liable for failing to settle the claim when time was of the essence