Continental Insurance Co. v. Bayless & Roberts, Inc.

OPINION

Before BOOCHEVER, C. J., RABINO W-ITZ, CONNOR and BURKE, JJ., and DIMOND, Senior Justice. BURKE, Justice.

This appeal presents issues arising from an insurance company’s refusal to unconditionally defend its insured and the insured’s subsequent decision to settle the case.

Appellee Bayless and Roberts, Inc. (hereinafter B & R) was one of three defendants in a wrongful death action. B & R’s defense in that action was undertaken by its liability insurance carrier, appellant Continental Insurance Company, pursuant to the terms of its insurance contract. As the case proceeded to trial…