Marginian v. Allstate Insurance

The novel issue presented in the causes before us is whether an insured has a cause of action against its insurer when, contrary to the wishes of the insured, the insurer settles claims lodged against the insured within the monetary limits of the insured’s policy, and where the policy empowers the insurer to settle claims as it feels appropriate.

The insurance policy issued by appellant to appellee provides in relevant part:

“Allstate will pay for all damages a person insured is legally obligated to pay — because of bodily injury or property damage * * *:

“We will defend a person insured if sued…