Henry G. Auerbach, Respondents v. Maryland Casualty Company, Appellant

Summary

The New York Court of Appeals affirmed the Special Term's dismissal of the plaintiffs' complaint, holding that the complaint failed to state a cause of action because the insurance policy did not obligate the insurer to settle the claims. The court reversed the Appellate Division's decision and concluded that the insurer had the contractual right to proceed to trial rather than accept a settlement.