Safeco Insurance Co. v. Superior Court
California Court of Appeal
84 Cal. Rptr. 43 (1999)
- Written by Jody Stuart, JD
Facts
In an underlying action, the McKinney family sued Paul and Deborah Reed for wrongful death. Safeco Insurance Company of America (Safeco) and Mercury Casualty Company (Mercury) insured the Reeds and agreed to defend the Reeds. Subsequently, without the consent of Safeco, the Reeds and McKinneys entered into a stipulated judgment in favor of the McKinneys for $645,000. The stipulation provided that $145,000 was to be paid by Mercury, and the Reeds assigned their rights under their Safeco policy to the McKinneys. The Safeco policy included a no-action clause. In the present lawsuit, the McKinneys (plaintiffs) brought an action in trial court against Safeco (defendant) seeking to recover $500,000 on the Safeco policy pursuant to the stipulated judgment. The McKinneys asserted that the attorney retained by Safeco in the underlying action did not prepare for trial or participate in the voluntary settlement conference. Safeco asserted that the attorney was preparing to litigate the matter. Safeco moved for summary judgment, arguing that Safeco was not obligated to pay the stipulated judgment. The trial court denied the motion, and Safeco appealed.
Rule of Law
Issue
Holding and Reasoning (Stevens, J.)
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