Johnson v. Smith

MORRIS, Chief Judge.

Plaintiffs argue that they should be allowed to collect from defendants their judgments against Glenn, because defendants breached their contract to procure liability insurance for Glenn, even though defendants had no formal notice of the prior suit. We hold that the default judgments are evidence of a loss for which defendants may have been liable and that the trial judge committed error in dismissing the action.

In North Carolina, “if an insurance agent or broker undertakes to procure for another insurance against a designated risk, the law imposes upon him the duty to…