Albert Oehme v. Emily Johnson and Others

Insurer's assumption of defense of action -- liability. The garnishee is a casualty company which insured the defendant Emily Johnson against loss imposed by law as a result of her ownership, use or maintenance of an auto. The plaintiff sued for damages alleged to have been sustained in a collision between her auto and his auto and recovered judgment. He claimed in his complaint four items of damages -- injury to himself, damage to his auto, expenses for hospital and medical treatment of his wife, and loss of her services and companionship. The company was given notice, and the summons and complaint were delivered to it. With knowledge of the claims made it assumed and conducted the defense. It told Mrs. Johnson to ""forget about it""; and until after verdict for the plaintiff it made no claim that it was not liable, if they were proved, for all of the items of damages enumerated.