Consolidated American Insurance Company v. Mike Soper Marine Services

942 F.2d 1421 CONSOLIDATED AMERICAN INSURANCE COMPANY, Plaintiff-Counter-defendant-Appellant, v. MIKE SOPER MARINE SERVICES, et al., Defendants, and Carl Mayerhoffer, individually and as Assignee of Michael Soper, Defendant-Counter-Plaintiff-Appellee. No. 89-55929. United States Court of Appeals, Ninth Circuit. Argued and Submitted Nov. 6, 1990. Decided Aug. 23, 1991. As Amended. Irving H. Greines and Marc J. Poster, Greines, Martin, Stein & Richland, Beverly Hills, Cal., for plaintiff-appellant. Brooks L. Iler, Scott E. Shaffman and Janice R. Mazur, Shaffman, Iler, Palkowitz & Doft, San Diego, Cal., for defendant-appellee. Appeal from the United States District Court for the Southern District of California. Before HUG, CANBY and WIGGINS, Circuit Judges. HUG, Circuit Judge: 1 This appeal concerns the duty of an insurance carrier to defend an action against the insured. In this case, after the carrier refused the defense, a settlement was reached between the injured claimant and the insured for $1,000,000. The insured assigned his claims against the carrier in exchange for the claimant's covenant not to execute against the insured on the judgment. The injured claimant…