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KOEHNEN v. HERALD FIRE INS. CO.

No. 95-2142.

89 F.3d 525 (1996)

Joseph L. KOEHNEN, Plaintiff-Appellant, v. HERALD FIRE INSURANCE COMPANY, Defendant/Garnishee-Appellee, Rachel Sarah Paul, Defendant.

United States Court of Appeals, Eighth Circuit.

Decided July 11, 1996.

Attorney(s) appearing for the Case

David R. Knodell, Minneapolis, MN, argued, for appellant.

Donald R. McNeil, Minneapolis, MN, argued (Gregory M. Cesarano and David M. Hudson, on the brief), for appellee.

Before BOWMAN and LOKEN, Circuit Judges, and WOLLE, Chief District Judge.

LOKEN, Circuit Judge.

When a liability insurer denies coverage and refuses to defend its insured, Minnesota law allows the plaintiff-claimant and the defendant-insured to enter into a "Miller-Shugart" settlement, collectible only from the insurer. The plaintiff then proceeds against the insurer by a garnishment action, seeking to establish coverage and collect the settlement. See Miller v. Shugart, 316 N.W.2d 729 (Minn.1982...

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