American Surety Co. v. State Farm Mutual Automobile Insurance

Thomas Gallagher, Justice.

Action by American Surety Company, primary liability insurer of the driver of an automobile involved in an accident, against State Farm Mutual Automobile Insurance Company, excess liability insurer of such driver, to recover one-half of plaintiff’s attorney’s fees and expenses in defending an action against the driver for damages arising out of the accident.

Shortly after the original action was instituted, plaintiff notified defendant that the amount demanded exceeded the liability limits of plaintiff’s policy, and accordingly that defendant might be liable for any…