McDonald v. Royal Indem. Ins. Co.

• Decision Date: 17 October 1932
• Docket Number: No. 92.,92.
• Citation: 162 A. 620
• Parties: McDONALD v. ROYAL INDEMNITY INS. CO.
• Court: New Jersey Supreme Court

162 A. 620

McDONALD

v. ROYAL INDEMNITY INS. CO.

No. 92.

Court of Errors and Appeals of New Jersey.

Oct. 17, 1932.

Syllabus by the Court.

1. The provisions of an insurance policy examined and found not to include any obligation to settle ail action at law brought against its assured.

2. The case is barren of evidence of negligent management by defendant of an action brought against its assured.

Appeal from Supreme Court.

Suit by Henry B. McDonald against the Royal Indemnity Insurance Company. From a judgment of nonsuit, the plaintiff appeals. Affirmed.

Bain & Fowler, of Boonton (Alfred Brenner, of Bayonne, of counsel), for appellant.

King & Vogt, of Morristown (Harold A. Price, of Morristown, of counsel), for appellee.

BODINE, J.

This is an appeal from a Judgment of nonsuit. The plaintiff procured from the defendant a policy of indemnity insurance. He became involved in an automobile accident, and a judgment was recovered against him. He sought in this action to recover damages against the indemnity company, alleging that it had failed and neglected to properly protect and represent him as required by the terms of its policy. It appears that the defendant company could have settled the action against the plaintiff for $2,000. A verdict for $7,500, however, was recovered. This judgment was set aside. Subsequently the action could have been settled for $3,500, but a judgment was recovered for $20,000.

The policy is in the usual form. The pertinent portions are as follows: "The Royal Indemnity Company * * * hereby agrees with the insured * * * that if during the term (of the policy) any person or persons should sustain bodily injuries by accident whether resulting fatally or otherwise * * * by reason of the ownership, maintenance or use * * * of the automobiles described * * * at any location within the United States of America or the Dominion of Canada for which bodily injuries * * * the insured * * * as hereinafter provided, are liable for damages, Then the Company shall indemnify against loss arising out of such liability, subject to the limits of liability set forth in Statement 12, * * * And will in addition, in the name and on behalf of the name insured * * * 1. Defend all claims or suits for such bodily injuries; 2. (a) Pay all costs and expenses incurred with the company's written consent. (b) Pay all taxed costs. (c) Indemnify for all interest accruing upon any judgment. 3. Repay the expense incurred in providing such immediate...