Nationwide Mutual Insurance v. Starr

MOORE, Justice.

Once again we are required to resolve a dispute over the terms of an automobile insurance policy. Nationwide Mutual Insurance Company (Nationwide) argues that Lamont and Betty Starr (the Starrs) are not entitled to uninsured motorist benefits because they agreed to release the tort-feasor, Barbara Suiter (Suiter), in exchange for the right to pursue a bad faith settlement claim against Suiter’s insurer. The Court of Chancery ruled that the agreement only conditionally released Suiter; thus, Nationwide’s right of subrogation was preserved and it suffered no prejudice from the…