The Alabama Supreme Court reversed a summary judgment favoring an accident victim and her husband against their insurance company for uninsured motorist benefits on grounds the order improperly relied on a default judgment against the other driver.
In Travelers v. Gray, the state high court found a default judgment against the driver who caused the crash is not binding against a plaintiff's own insurer where the firm was not listed as a defendant in the original complaint. The court relied on its previous ruling in Bailey v. Progressive Specialty Insurance Co. to reach its conclusion.
The court previously held that in order for both the insured and the uninsured/underinsured motorist carrier to protect their rights in the course of making a claim, the plaintiff can either join his own liability insurer as a defendant in the lawsuit or give notice of the filing and the possibility of a claim at the close of trial. In cases where the insurer is named as a party, it has the right to choose whether to participate. In either case, the insurer will be bound by the court's decision on the issues of liability and damages.