Kevin Cowan and Jimmy Blanding v. Allstate Insurance Company, 357 S.C. 625

Summary

The Supreme Court of South Carolina held that South Carolina Code section 38-77-142(B) did not modify the rule established in Shores v. Weaver that an insured's failure to cooperate does not defeat mandatory minimum insurance coverage owed to an innocent third party. The court reversed the Court of Appeals and the trial court's grant of summary judgment to Allstate, concluding that the statute governs the relationship between the insurer and insured and does not impose notice requirements on third-party claimants.

Holdings

1. Section 38-77-142(B) does not impact or modify the holding in Shores v. Weaver.
2. Allstate was not entitled to summary judgment on the ground that section 38-77-142(B) relieved it of responsibility for the judgment.

Questions Presented

1. Whether S.C. Code section 38-77-142(B) relieves an insurer of its obligation under Shores v. Weaver to pay a judgment up to the statutory minimum limits when the insured failed to notify the insurer of the suit or motion for judgment.
2. Whether section 38-77-142(B) modified the rule that an insured's failure to cooperate does not void mandatory minimum coverage as to an innocent third-party victim.

Disposition

reversed