Vernon Gray v. Grain Dealers Mutual Insurance Co.

Opinion for the Court filed by Circuit Judge SILBERMAN.

SILBERMAN, Circuit Judge:

Following a personal injury claim filed against Windell Speed by Vernon Gray, a pedestrian Speed hit while driving his car, Grain Dealers Mutual Insurance Company breached its duty to settle on behalf of its insured, Speed. In doing so, Grain Dealers exposed itself to liability in excess of Speed’s policy limits for consequential damages resulting from its breach. Speed assigned to Gray Speed’s chose in action against Grain Dealers in exchange for Gray’s release of Speed from liability to pay a default judgment of…