Maine High Court Upholds Claims Settlement, Case Dismissal Over Insured’s Objection
The Maine Supreme Judicial Court ruled that an insurer can settle a claim and dismiss the lawsuit against its insured without the insured's approval.Summary
The Maine Supreme Judicial Court has ruled that a court was correct to acknowledge an insurance company's settlement of a claim and dismiss the lawsuit against its insured, Patrick O'Brien, without his approval. O'Brien objected to the settlement and dismissal of a complaint alleging he trespassed, arguing he wanted to establish a claim of wrongful use of civil process against the woman who accused him. The court affirmed the lower court's decision in a 6-0 ruling, finding that the refusal to take testimony was within the court's discretion and that the insurer had the contractual power to settle despite O'Brien's objection. The court noted that forcing plaintiffs to litigate a case against their will poses practical problems, especially where parties have settled, and that O'Brien's potential claim for wrongful use of civil process would require him to prove that the plaintiff initiated civil proceedings without probable cause. The high court found that the only purpose in denying the motion to dismiss would be to try to force the establishment of an element of a claim of wrongful use of civil process, which was solidly within the court's discretion to dismiss the complaint with prejudice.
(Source：Insurance Journal)