Gray v. Begley

Opinion

CROSKEY, J.

While this case presents a somewhat tortured procedural history, it also presents a significant question in the field of insurance litigation. When an insurer provides an insured a defense under a reservation of rights, and the insured subsequently reaches a private settlement with the third party claimant without the participation of the insurer, may the insurer intervene in the underlying action brought by the claimant to protect its own interests—including the right to seek a setoff of the judgment against the insured based on a prior settlement by the claimant with…