Comunale v. Traders & General Insurance Co.
California Supreme Court
328 P.2d 198 (1958)
- Written by Noah Lewis, JD
Facts
While Anthony Comunale (plaintiff) and his wife, Mrs. Comunale, were walking in a crosswalk, Percy Sloan hit them with his truck. Comunale was seriously injured, and Mrs. Comunale had minor injuries. Sloan had insurance coverage with Traders & General Insurance Company (Traders) (defendant) for $10,000 per injury, $20,000 per accident. The policy had a duty to defend. Traders informed Sloan the policy did not apply because Sloan was driving someone else’s truck. The Comunales sued Sloan. Traders refused to defend, but Sloan hired competent counsel. The Comunales offered to settle for $4,000. Sloan informed Traders that he could not pay $4,000 and the jury was likely to return a verdict exceeding $10,000. Traders had the right to make settlements, but it declined to do so. The jury awarded Comunale $25,000 and Mrs. Comunale $1,250. The Comunales sued Traders and obtained a judgment of $10,000 for Comunale and $1,250 for Mrs. Comunale. Traders paid the judgment. Sloan assigned his rights to Comunale, who then sued Traders to recover the extra $15,000. The jury found for Comunale, but the trial court entered a judgment for Traders notwithstanding the verdict. Comunale appealed.
Rule of Law
Issue
Holding and Reasoning (Gibson, C.J.)
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