Opinion ID: 1308014
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: The relevant facts are fully developed in the opinion issued by the Court of Appeals. Briefly, McPherson sued Charleston and one of its police officers for constitutional violations and personal injuries he suffered when the officer attempted to block the path of a fleeing prowler with his cruiser. McPherson's complaint alleged that Charleston failed to train and supervise its police officers in the proper use of patrol cars. Charleston's insurer, respondent Budget and Control Board of the State of South Carolina, Division of General Services Insurance Reserve Fund (the Fund), denied coverage for McPherson's injuries based on an exclusion contained in Charleston's general liability policy. [1] McPherson and Charleston settled the suit after a mistrial. Thereafter, McPherson and Charleston (jointly petitioners) brought an action against the Fund and the Fund's reinsurance company, respondent Michigan Mutual Insurance Company (Michigan Mutual), seeking to recover the amount of the settlement under Charleston's general liability policy. The trial judge found that the policy covered McPherson's injuries so that the Fund was liable for the settlement amount. The trial judge also found that petitioners had no cause of action against the reinsurance company because they presented no authority establishing that a reinsurer would be directly liable to them after a judgment. The Fund appealed the coverage issue, and petitioners cross-appealed the trial judge's ruling that they had no cause of action against Michigan Mutual. The Court of Appeals determined that Charleston's policy excluded coverage for McPherson's injuries and reversed that portion of the trial judge's order. The Court of Appeals affirmed the trial judge's ruling that petitioners had no cause of action against Michigan Mutual, holding that the lack of a contractual relationship between Michigan Mutual and petitioners precluded petitioners from asserting that Michigan Mutual was liable directly to them for the settlement amount. We granted certiorari.