Hamilton v. Maryland Casualty Co.

Opinion

WERDEGAR, J.

A liability insurer agrees to defend its insured against a personal injury lawsuit. After the insurer refuses a settlement demand within the policy limits, the claimant and the insured, without the insurer’s participation, agree on a settlement. Under the settlement agreement, a stipulated judgment in excess of the policy limits is entered, the claimant agrees not to execute the judgment against the insured, and the insured assigns to the claimant the insured’s cause of action for breach of the insurer’s duty to accept a reasonable settlement demand. The trial court…