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Mesmer v. The Maryland Automobile Insurance Fund3/11/1999
e cited.
Thus, when MAIF notified the Mesmers and the attorney for Peggy Lyons in 1990 that there was no coverage, either the Mesmers or Peggy Lyons or all of them could have brought a declaratory judgment action against MAIF to determine the coverage issue. If they had prevailed in such action, MAIF would have been required to undertake a defense. Upon MAIF's undertaking that defense, the tort duty to act in good faith to settle the claim within policy limits would have arisen. The plaintiffs in the present case, however, chose to forego this declaratory judgment remedy against MAIF.
JUDGMENT OF THE CIRCUIT COURT FOR MONTGOMERY COUNTY AFFIRMED. APPELLANTS TO PAY COSTS.
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