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CONTINENTAL INS. CO. v. BAYLESS & ROBERTS, INC.

Nos. 2922, 2923.

608 P.2d 281 (1980)

CONTINENTAL INSURANCE COMPANY and Arthur Stanford, Appellants, v. BAYLESS AND ROBERTS, INC., Appellee. BAYLESS AND ROBERTS, INC., Cross-Appellant, v. CONTINENTAL INSURANCE COMPANY and Arthur Stanford, Cross-Appellees.

Supreme Court of Alaska.

March 7, 1980.

Attorney(s) appearing for the Case

Sanford M. Gibbs, Hagans, Smith, Brown, Erwin & Gibbs, Anchorage, for appellants and cross-appellees.

Warren W. Matthews, Jr., Matthews, Dunn & Bailey, Anchorage, Lance C. Parrish, Fairbanks, for appellee and Cross-appellant.

Before BOOCHEVER, C.J., RABINOWITZ, CONNOR and BURKE, JJ., and DIMOND, Senior Justice.

OPINION

BURKE, Justice.

This appeal presents issues arising from an insurance company's refusal to unconditionally defend its insured and the insured's subsequent decision to settle the case.

Appellee Bayless and Roberts, Inc. (hereinafter B & R) was one of three defendants in a wrongful death action. B & R's defense in that action was undertaken by its liability insurance carrier, appellant Continental Insurance Company, pursuant to the...

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