Reference no: EM133854870

Question

An insurer was found to have breached their duty to defend their policyholder in Black v. Allstate Insurance Company when Allstate breached both contractual and fiduciary duties when it failed to adequately investigate an accident in which both parties were insured by Allstate.

In this case, "Plaintiff Chris Black appealed from a summary judgment dismissing his claim against Allstate Insurance Company, his automobile insurance carrier. Black alleges that Allstate breached both contractual and fiduciary duties to deal in good faith when it failed to adequately investigate the facts of an accident that involved Black and another party who was also insured by Allstate. The district court granted summary judgment in favor of Allstate, finding that Black did not have standing to bring a direct action against Allstate. However, the Utah Supreme Court concluded that Black properly asserted a claim for relief against Allstate and that summary judgment was inappropriate. Under these circumstances, the Utah Supreme Court reversed and remanded to the Lower Court for further proceedings consistent with this opinion," (Utah Supreme Court, Justice Durrant).

Succinctly, all witnesses stated that Plaintiff Black was not at fault in the accident. Thus, Black filed a claim with Allstate against the other driver who was also covered by Allstate. The other driver filed a counterclaim against Black which placed blame on him, too, for the automobile crash. Allstate accepted the claims of both drivers and placed equal responsibility on both drivers for the automobile crash which limited the monetary damages to Black as an innocent victim. Plaintiff Black prevailed at the Utah Supreme Court which categorized Black as the innocent victim of the automobile crash.