Allen v. Aetna Casualty & Surety Co.

In this appeal, we consider whether an allegation that a defendant breached an oral agreement to “effect a full and final settlement” of a tort claim states a cognizable cause of action for breach of contract.

In 1978, Clifton Allen filed a motion for judgment seeking $150,000 in compensatory damages and $250,000 in punitive damages from Aetna Casualty and Surety Company for breach of contract. Aetna filed a demurrer in which it asserted, inter alia, * that the contract was unenforceable as vague and indefinite. The trial court sustained the demurrer and dismissed the action, but granted Allen…