Sederholm v. Michigan Mutual Insurance

Plaintiffs, as assignees of Lynn Muree Salmi, one of defendant’s policyholders, against whom plaintiffs had taken a default judgment in April, 1981, for $818,000, plus interest and costs, filed a two-count complaint in circuit court against defendant. Count I alleged breach of defendant’s contract with Salmi by failure to defend Salmi in plaintiffs’ action against her. Count II alleged tortious bad faith for defendant’s failure to settle. Both parties moved for summary judgment pursuant to GCR 1963, 117.2(1) and (3). Both motions were initially denied on grounds of the existence of questions…