184 A.D. 1 | N.Y. App. Div. | 1918
The policy was the usual indemnity policy whereby the defendant agreed to indemnify the plaintiff against loss
Under this clause in the policy, we think that a settlement by the plaintiff, without the consent of the defendant, has released the defendant from all liability to the plaintiff. The defendant sought to continue its appeal but the case was dismissed by the appellate court on the ground that it had been settled with the plaintiff, so that the defendant was deprived of all opportunity to review its liability upon appeal. The parties might lawfully stipulate where the case was settled by the assured without the consent of the insurer, and the insurer’s right to contest the claim was thus destroyed, that the obligations under the policy might cease. The parties have so stipulated and I am unable to see, therefore, how any obligation on the part of the defendant survives the settlement of the Kleisrath action by the plaintiff without the defendant’s consent.
Judgment should be directed for defendant, with costs.
Dowling, Laughlin, Page and Merrell, JJ., concurred.
Judgment directed for defendant, with costs. Order to be settled on notice.