In this auto accident case, the defendant insurance company, Safeway Insurance Co., insured Ruben Delatorre under a policy of insurance with a limit of $40,000. Safeway hired an attorney to represent Delatorre in the personal injury lawsuit brought against Delatorre. However, the lawyer for Delatorre/Safeway never submitted a bill and was never paid. The lawyer apparently abandoned the case, and a default judgment was entered against Delatorre in the amount of $250,000.
Then the plaintiff in the auto-injury case received an assignment from Delatorre allowing the personal injury plaintiff to sue Safeway directly for the excess judgment.
The judge in the Circuit Court of Cook County granted the plaintiff’s motion for summary judgment, ruling that Safeway breached its duty to defend and was liable for the entire $250,000 judgment.