Nicole Nunn, Petitioner v. Mid-Century Insurance Company, a California Corporation, Respondent — Eid, J., Dissenting

Summary

Justice Eid dissents from the majority's conclusion that an insurer actively defending its insured is bound by a stipulated judgment entered without the insurer's participation. The dissent argues that the agreement violates the insured's duty to cooperate, deprives the insurer of control over the defense, and cannot reliably establish the insured's liability or damages because the insured bears no actual responsibility for the judgment. The dissent also maintains that the majority's discussion of excess-judgment damages does not resolve whether the stipulated judgment is enforceable in the first place.