MORGAN v. STATE FARM MUTUAL AUTOMOBILE INSUR. CO., 488 P.3d 743

Morgan, while intoxicated, severely injured Jesse Atkins; Atkins's medical bills exceeded $2 million.
State Farm (insurer for Morgan) paid its $100,000 policy limit in a 2010 settlement with Atkins but did not obtain a release of the workers'-compensation subrogee (NYM).
NYM (subrogee) sued Morgan for reimbursement; after trial a judgment of $844,865.89 was entered against Morgan in April 2014 and affirmed on appeal with mandate issued March 23, 2017.
Morgan sued State Farm on May 23, 2017 for (1) breach of the implied duty of good faith and fair dealing (bad faith) and (2) breach of contract, alleging State Farm failed to secure the subrogee release.
The federal district court held both claims accrued in 2010 (when the settlement was negotiated) and were time-barred; the Tenth Circuit certified two questions to the Oklahoma Supreme Court.

Issue	Plaintiff's Argument	Defendant's Argument	Held
When does a tort (bad-faith) claim based on an adverse/excess judgment accrue when the adverse judgment is appealed?	Accrual occurs when the adverse judgment is entered (injury exists once judgment is entered and unstayed).	Entry of a judgment subject to appeal is speculative; accrual must await a final, non-appealable judgment.	No — a bad-faith tort claim based on an adverse judgment accrues only when the underlying judgment is final and non-appealable (affirmed and mandated).
When does a breach-of-contract action accrue if damages aren’t realized until later?	Claim does not accrue until damages are sustained/ascertained (i.e., after judgment).	Accrues at the moment of breach (settlement without release), so limitations run from breach.	Yes — contract actions accrue when the contract is breached, even if damages occur later; the discovery rule does not apply to contract claims, though fraudulent concealment may toll limitations.

Stephens v. General Motors Corp., 905 P.2d 797 (Okla. 1995) (legal-malpractice claim accrues only after underlying adverse judgment is finally affirmed)
MBA Commercial Constr., Inc. v. Roy J. Hannaford Co., 818 P.2d 469 (Okla. 1991) (cause of action accrues when plaintiff could first maintain action to a successful conclusion)
Wille v. GEICO Cas. Co., 2 P.3d 888 (Okla. 2000) (contract-based insurer-benefits claim accrues when insurer breaches contract)
Taylor v. State Farm Mut. Auto. Ins. Co., 913 P.2d 1092 (Ariz. 1996) (adopting final-judgment rule for third-party bad-faith claims arising from failure to settle)
ACE Sec. Corp. v. DB Structured Prods., Inc., 36 N.E.3d 623 (N.Y. 2015) (endorsing bright-line rule that contract claims accrue at moment of breach)
Gourley v. Lookabaugh, 149 P.1169 (Okla. 1915) (plaintiff entitled to nominal damages upon breach; actionable claim exists at breach)