State Farm Mutual Automobile Insurance Company v. Brewer

406 F.2d 610 STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, a corporation, Appellant and Cross-Appellee, v. Donald L. BREWER, Administrator of the Estate of William Ira Pate, deceased, Appellee and Cross-Appellant. No. 21670-A. United States Court of Appeals Ninth Circuit. November 29, 1968. Otto R. Skopil, Jr. (argued), of Williams, Skopil & Miller, Salem, Or., for appellant. James J. Kennedy (argued), of Ryan & Ryan, Portland, Or., for appellee. Before HAMLIN, KOELSCH and BROWNING, Circuit Judges. KOELSCH, Circuit Judge. 1 This is a diversity action governed by Oregon law, commenced and prosecuted by the administrator of the estate of William Ira Pate, deceased, (hereinafter Administrator) against State Farm Mutual Insurance Company to recover damages for failure to settle the claim of one Donald L. Brewer against Pate within the limits of a $10,000 automobile liability insurance policy issued by State Farm. It is the aftermath of a suit for personal injuries prosecuted by Brewer against Pate in an Oregon State court. State Farm had undertaken Pate's defense pursuant to a reservation of rights provision in its policy of the kind commonly contained in liability policies.…