Colossal Casualty retained attorney Virgie Peck to investigate the claim by James Gomez. Before the claim was resolved, Mr$.$ Gomez became impatient and instituted a bad faith action against Colossal. Virgie Peck is already familiar with the original claim. Why should Colossal use a separate law firm to defend the bad faith claim?

$($Search Chapter $3)$

a$.$ Colossal might lose one case but win the other or vice versa.

b$.$ Documents prepared in defending the bad faith action are more likely to be subject to discovery if Virgie Peck handles both issues.

c$.$ To save money

d$.$ Unlike defense costs associated with the original claim, legal expenses associated with the bad faith claim are not subject to policy limits$.$