Even though there appears to be a dispute regarding the actual contract language, it is not a material dispute because under either language, a horse-drawn buggy is not a motor vehicle. Finally, pursuant to the policy definition, a horse-drawn buggy is not a trailer. The first assignment of error is overruled. II Appellants next urge the trial court erred in finding they could not recover against appellee Eric Insurance Company for compromising appellants' claims against the tortfeasors. Appellants assert appellee's attorney is vicariously liable to them for releasing appellants' claims without their authorization.
Appellants characterize appellee's actions as being done in bad faith.
Appellee points out appellants were placed on notice of the subrogation action and were represented by counsel, but failed to promptly exercise their rights against the tortfeasors. It is clear to this court appellee could not, as a matter of law, release the tortfeasors from liability to appellants, and in fact, appellee asserts its intent in executing the release was only to discharge the tortfeasors for the amount the appellee expended on behalf of appellants. The evidence is undisputed the inclusion of that word was inadvertent. Nevertheless, this negligence in executing the release including the Hutchison's claim is the act that compromised their ability to recover for their damages. The relationship between an insured and an insurance company is not merely a contractual one.