Supreme Court of New Jersey

Howard Lieberman, Plaintiff-Appellant and Cross-Respondent v. Employers Insurance of Wausau, Defendant-Respondent…

September 15, 198084 N.J. 325

Summary

The New Jersey Supreme Court held that a physician's written consent to settle a malpractice claim is revocable absent an express contractual provision, that an insurer‑appointed defense attorney owes undivided loyalty to the insured and may be liable for malpractice if he settles without consent, and that liability was established against both the insurer and the attorney but damages must be determined on remand. The Court affirmed the Appellate Division’s findings of liability, modified the judgment, and remanded for a new trial on damages.