Allstate Insurance v. Reserve Insurance

Plaintiff’s suit against the defendant alleges negligent failure of the defendant company to settle an action against its insured within its policy limits with resulting damage to the plaintiff which carried the overage coverage. Reserve’s motion to dismiss was denied by the Trial Court (Flynn, J.).

Gerard E. Moreau, who was insured with both Reserve and Allstate, was operating an automobile on April 10, 1971, which struck William R. Lewis, a pedestrian. Reserve’s policy provided liability coverage in the amount of $15,000 and Allstate provided excess coverage. A jury trial of the ensuing suit…