Alex N. Bell v. Commercial Insurance Company of Newark, New Jersey, a Corporation

KALODNER, Circuit Judge.

This diversity action brought by an insured (Bell) against his insurance company (Commercial) is the aftermath of a lawsuit arising out of an automobile accident in which Bell' was the defendant and the injured parties obtained judgment against him in the amount of $24,000. Bell was defended by Commercial pursuant to its obligation under the insurance contract, which contained the usual provision requiring it to defend and reserving to it the right to make such investigation, negotiation and settlement as it deemed expedient. Bell, however, was short not only in…