A pulmonary specialist was sued for malpractice following the death of a patient during surgery. Her professional liability insurer settled the claim within policy limits without her consent. Believing the suit to have been without merit, she sued the insurer for breach of contractual duties and for causing injury to her in not defending the claim. She appealed trial court judgment in favor of the insurance company. The policy contained the following pertinent language: "(The insurer)shall have the right and duty to defend any suit against the Member seeking such Damages, even if any of the allegations of the suit are groundless, false or fraudulent, and may make such investigation or such settlement of any claim or suit as it deems expedient. .''

The appeal court concluded that the insurer had complete discretion in determining how a claim was to be managed. As there were no allegations of fact "sufficient to support a claim of bad faith,'' the insurer was found to have fulfilled its obligations. The judgment of the trail court was affirmed in favor of the insurer and against the insured.

(SHARPE, Appellant v. PHYSICIANS PROTECTIVE TRUST FUND, Appellee. Florida District Court of Appeal, First District. No. 90-717. April 23, 1991. CCH 1991 Fire and Casualty Cases, Paragraph 3149.)