Papudesu v. Medical Malpractice Joint Underwriting Ass'n

OPINION

Justice ROBINSON

for the Court.

This appeal requires us to answer the following narrow but important question: what duties, if any, does an. insurer owe to its insured before settling a medical malpractice claim when the malpractice policy at issue contains language that accords great discretion to the insurer with respect to the settlement of a claim?

The exact language at issue in this case is: “The [insurance] company may make such investigation and settlement of any claim or suit as it deems expedient.” (Emphasis added.) The plaintiff, Mohan Papu-desu, M.D., appeals from the Superior…