Ralph E. Coblentz, as Administrator, D.B.N. Of the Estate of Edward Thomas Coblentz, Deceased v. American Surety Company of New York

How later courts described this case

• holding that an insurance company which chose not to defend its insured could not later deny coverage by asserting the “legally obligated to pay” provision in the policy after the insured reached a settlement where the injured party agreed to collect only against insurance proceeds
• holding that if a liability insurer is informed of an action against its insured, but, declines to defend the insured, the insurer may be held to a consent judgment entered in the action absent fraud or collusion
• holding that if a liability insurer is informed of an action against its insured but declines to defend the insured, the insurer may be held to a consent judgment entered in that action, absent fraud or collusion
• “By refusing to defend Steil’s claim, the carrier left Walker to his own devices to protect himself in the best way possible.”

Written by the judges who cited it.