Section 3.21 Settlements for Specified Assets

• Library: Settling Cases 2014

An occasional source of uncertainty for injured parties is the existence of controversies about insurance coverage of tortfeasors. These controversies may arise when the insurer of a tortfeasor denies coverage altogether or defends a claim under a reservation of rights. In either case, a plaintiff may be forced to go through the time and expense of litigating the issues of liability and damages, only to learn that the issue of coverage must be litigated in a later garnishment action.

This situation gave rise...