Posted by Memo in Support of Objection to Subpoena for Settlement Documents Holy $@#!. In recently released court documents, it turns out that Michael Jackson’s insurance company negotiated and settled the 1993 civil suit against his wishes. The following are excerpts from that recently released court document:
Pg3 The settlement agreement was for global claims of negligence and the lawsuit was defended by Mr. Jackson’s insurance carrier. The insurance carrier negotiated and paid the settlement, over the protests of Mr. Jackson and his personal legal counsel. It is general practice for an insurer to be entitled to control settlement negotiations and the insured is precluded from any interference. Under the majority of contracts for liability insurance, the absolute control of the defense of the matter is turned over to the insurance company and the insured is excluded from any interference in any negotiation for settlement or other legal proceedings (emphasis added). An insurance carrier has the right to settle claims covered by insurance when it decides settlement is expedient and the insured may not interfere with nor prevent such settlements. Pg2 Because insurance companies were the source of the settlement amounts, and the insurance companies make the payments based on their contractual rights to settle the proceeding without Mr. Jackson’s permission, the settlement does not constitute an admission and cannot be used to create such an impermissible inference to the jury. Pg3 The speculative suggestion that Mr. Jackson somehow made an admission when an insurance company required a settlement, and in fact paid for the settlement, creates an impermissible inference to the jury that would deprive Mr. Jackson of due process of law.
Download court doc: :nav 1993 Civil Suit Settled by Insurance Co. against Jackson’s wishes