Miller v. Shugart

Lynette Miller (plaintiff) was injured riding in a car driven by Mark Shugart (defendant) and owned by Barbara Locoshonas (defendant), insured by Milbank Mutual Insurance; after Milbank sought a declaratory judgment disclaiming coverage on the theory Shugart was not Locoshonas's agent, a court eventually ruled Milbank had to cover both defendants, and Milbank's appeal of that ruling was denied. While that appeal was pending, Milbank refused to join settlement talks between Miller and the defendants, who ultimately settled via a stipulation confessing judgment for $100,000 (double the policy limit), collectible only from insurance proceeds with no personal liability to the defendants. When Miller sought to garnish Milbank for the judgment, Milbank argued the defendants breached the policy's cooperation clause by settling over its objection and that the confession of judgment was invalid; the trial court granted Miller summary judgment for the $50,000 policy limit plus interest on the full $100,000.