Delatorre v. Safeway Insurance Company

Passenger in vehicle of insured was injured in accident, In 1991. Passenger sued driver, whose insurer agreed to defend him under reservation of rights. Insurer breached its duty to defend, as it had nominal, passive, and one-way communication with attorney ostensibly retained to defend insured, and default judgment in excess of policy limits was entered. Entry of default judgment in PI case directly flows from insurer's breach of contract.Insured, who did not learn of default until years later, should not be subjected to judgment as insurer caused judgment to be entered. (NEVILLE, concurring; STERBA, concurring in part and dissenting in part.)