INSURANCE COMPANY LIABLE FOR STIPULATED JUDGMENT

By Kent Berk on March 31st, 2005 in BLOG, INSURANCE LAW

John Impellizzeri (the firm’s client) was the Plaintiff and Kenneth Sloniger was the Defendant in a lawsuit brought by Impellizzeri for Sloniger’s misrepresentations and errors in selling Impellizzeri certain life insurance. Sloniger’s insurance company defended him in the claims, but reserved rights to deny coverage. Because of the reservation of rights, Sloniger was partially released from his duty to cooperate with the insurer and entered a stipulated judgment in favor of Impellizzeri.

Impellizzeri then attempted to enforce the stipulated judgment against Sloniger’s insurance company. Judge Anna Baca found in favor of Impellizzeri and allowed him to enforce the judgment against American Automobile Insurance Company, but only to the extent that the stipulated judgment represented a reasonable settlement of the claims against Sloniger.