American Physicians Insurance Exchange v. Garcia

HIGHTOWER, Justice,

joined by

DOGGETT, GAMMAGE and SPECTOR, Justices,

dissenting.

On December 31,1992, this court issued an opinion in this cause which held that an injured plaintiff, as the assignee of the insured, is not precluded from recovering damages from the insurer by the existence of a covenant between the plaintiff and the insured to seek relief only from the insurer. Now the court has turned to several different issues for its decision — American Physicians Insurance Exchange’s (APIE) duty to defend and to settle — and has avoided an issue important to the jurisprudence of the state.…