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STATE FARM MUTUAL AUTOMOBILE INS. CO. v. FARMERS INS. EXCH.

238 Or. 285 (1964)

387 P.2d 825

393 P.2d 768

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY ET AL v. FARMERS INSURANCE EXCHANGE

Supreme Court of Oregon.

Reargued September 9, 1963.

Argued on rehearing April 30, 1964.

Affirmed December 18, 1963.

Former opinion adhered to as modified July 8, 1964.

Petition for rehearing denied September 9, 1964.

Attorney(s) appearing for the Case

Myron L. Enfield and Geo. A. Rhoten, Salem, argued the cause for appellant. With them on the briefs were Rhoten, Rhoten & Speerstra, Salem.

Al J. Laue, Salem, argued the cause for respondents. With him on the brief were Williams & Skopil, Salem.

Before McALLISTER, Chief Justice, and ROSSMAN, PERRY, SLOAN, O'CONNELL, GOODWIN and DENECKE, Justices.

AFFIRMED.

DENECKE, J.

The question for decision is whether or not the defendant insurer used due diligence to secure the cooperation of its insured to assist in the defense of an action for damages.

The defendant, hereinafter referred to as Farmers, wrote an automobile liability policy for one Ratzlaff. During the policy period Ratzlaff had a collision with one of the plaintiffs, Sjolund. Sjolund carried collision...

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