Commercial Union Insurance v. Liberty Mutual Insurance

Plaintiff, an excess insurance carrier-, filed an equitable subrogation action in the Oakland Circuit Court against defendant, a primary insurance carrier. Plaintiff alleged that defendant’s failure to negotiate a settlement in a case against their mutual insured constituted bad faith pursuant to City of Wakefield v Globe Indemnity Co, 246 Mich 645; 225 NW2d 643 (1929), thereby causing plaintiff to be exposed to risk. A jury found no cause of action against Liberty Mutual. The circuit court denied plaintiff’s motion for judgment notwithstanding the verdict or for a new trial. The Court of…