Insured cannot rely on others to notify carrier of a claim(This case is a good reminder to readers that insureds themselves must report lawsuits or threat of suits to their insurers. We aren't told whether the insurer's "agent" was an agent or an adjuster, but one can imagine the probability of an E&O claim against the agent. If the agent was told of a lawsuit (a point of dispute), would it have been unreassonable for the insured to expect the agent to inform or remind him of his duties under the policy?)
A customer left his automobile at a repair shop. The auto was inoperable, its engine partially disassembled. After examining the car, the shop owner said he decided not to repair it and waited for the customer to retrieve it.
While the shop owner was on vacation, the automobile disappeared from the shop's lot. Upon the shop owner's return, the car owner confronted him about the whereabouts of the missing automobile and contacted the police. According to a report prepared by the investigating police officer, the shop owner believed that the customer had retrieved his automobile, but the customer stated that he "had no idea who could have taken it."
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