Keating v. Contractors Tire Service, Inc.

This case requires us to examine the legal consequences of advance payments, made by a tortfeasor's liability insurer to or for an injured claimant, on a judgment subsequently rendered against the insured, when the issue was raised prior to trial and separated from the issue of liability and damages. Plaintiff appeals from an order of the trial court that reduced Plaintiff's judgment by the amount previously received from Defendant's insurer.

The sole issue, not previously addressed in Alabama, is: In the absence of a prior agreement between insurer and third-party claimant, does the law…