Dodson v. Key

PALMORE, Justice.

This case presents two liability insurance questions not heretofore decided by this court, which are:

1. An insurance company settles a tort claim against its insured, though it is uncertain whether the coverage of its policy applies. The policy contains a subrogation clause providing, “In the event of any payment under this policy, the company shall be subrogated to all the insured’s rights against any person or organization,” etc. Does the company have a cause of action against another insurer based upon the premise that its own policy was not applicable and the other…