A recent malpractice case highlighted this issue. In Johnson v. Proselect Insurance, the doctor/insured contended that the insurer acted in bad faith by settling a claim after trial without the doctor’s consent. The doctor contended that the case should have been appealed, which would have reversed the adverse trial verdict. However, the insurer’s policy stated specifically that the insurer could settle claims after trial without the doctor’s consent. The doctor claimed, however, that the settlement caused her to suffer professional embarrassment and damaged her reputation. The Massachusetts appeals court upheld a summary judgment in the insurer’s favor. The court noted that the settlement was explicitly permitted by the terms of the policy, and argued that the doctor’s right to consent…
