Dohney v. Allstate Insurance Co.

OPINION

PAUL H. ANDERSON, Justice.

The following reformulated questions of law were certified to us by the United States District Court for the District of Minnesota:

I. Where a plaintiff settles with a tortfeasor for 40% of the tortfea-sor’s liability limits after giving the plaintiffs insurer notice under Schmidt v. Clothier, 338 N.W.2d 256 (Minn.1983), may the plaintiffs insurer deny an underin-sured motorist claim based on the plaintiffs failure to reach the “best settlement” with the tortfea-sor?

II. If so, does the court apply an objective or subjective test in determining whether the best…