Foust

This litigation arose out of an accident which occurred on August 7, 1970, when David F. Foust, a minor, was struck and injured by an automobile being driven in an allegedly negligent manner by appellant’s insured, James E. Cusick. Thereafter an action was filed against the driver by the boy’s parents, John W. and Regina C. Foust, and by David F. Foust (through his guardian ad litem, John W. Foust). The complaint alleged causes of action for loss of the child’s services ($10,000), loss of the wife’s services ($25,000), emotional distress as to the wife ($100,000), emotional distress as to the husband ($100,000), and general damages ($1,500,000).

At the time of the accident, Mr. Cusick was insured under a $25,000/ $50,000 liability policy. Pursuant to settlement negotiations, appellant paid $25,000 for a covenant not to further sue which was entered into by and between John W. Foust as guardian ad litem for David, and James E. Cusick, the driver and defendant in the personal injury action then on file. John and Regina Foust, however, reserved the right to continue suit for their alleged emotional distress and resulting physical injuries.

Appellant insurance company then…