West Bend Mutual Insurance v. Norton 

Plaintiff's counsel filed suit after rejecting offer to settle with other driver's insurer for her injuries from auto accident, but failed to inform either insurer of suit. Default judgment was entered, but adverse insurer denied coverage based on lack of notice of suit, and then Plaintiff's own insurer refused payment under uninsured motorist coverage, contending that the only reason adverse driver was "uninsured" was counsel's lack of notice. Court properly denied Plaintiff's claim for vexatious and unreasonable delay per Section 155 of Insurance Code. Delay in resolution was attributable to Plaintiff's rejection of the arbitration award, not to actions of insurer, and it was reasonable for insurer to assert lack of notice while following arbitration procedure. (McDADE and O'BRIEN, concurring.)