Safeway Ins. Co. of Alabama v. Bailey

On December 25, 1997, John Michael Johnson was involved in an automobile accident with another car occupied by Janice Bailey, Samuel Bailey, Jimiah Bailey, Eric Bailey, and Ladavian Smith (hereinafter referred to as the "Baileys"). Johnson immediately notified his insurance carrier, Safeway Insurance Company of Alabama, of the accident. On December 30, 1997, a Safeway claims adjuster sent a letter to the Baileys requesting them to authorize medical-consent forms so Safeway could evaluate their claims for medical expenses.

On January 13, 1998, the Baileys1 sued Johnson in the district court. On…