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MESMER v. M.A.I.F.

No. 50, September Term, 1996.

725 A.2d 1053 (1999)

353 Md. 241

Denise MESMER et al. v. The MARYLAND AUTOMOBILE INSURANCE FUND.

Court of Appeals of Maryland.

March 11, 1999.

Attorney(s) appearing for the Case

Martin H. Freeman (Robert K. Jenner, Freeman & Jenner, Bethesda; David M. Kopstein, Dross, Levinstein, Perilman & Kopstein, Washington) on brief for petitioners.

Mark D. McCurdy, Asst. Atty. Gen., Annapolis, Andrew H. Baida, Asst. Atty. Gen. (J. Joseph Curran, Jr., Atty. Gen., Baltimore; Stanley L. Lipshultz, Victor I. Weiner, Silver Spring) on brief for respondent.

Argued before BELL, C.J., and ELDRIDGE, RODOWSKY, CHASANOW, KARWACKI, RAKER and WILNER, JJ.

ELDRIDGE, Judge.

This is an action against a liability insurer based upon the insurer's allegedly erroneous denial of coverage. The issues are whether the action sounds in contract, in tort, or both, and what is the appropriate measure of damages.

I.

In January 1989 the Maryland Automobile Insurance Fund ("MAIF"), a state agency, issued an automobile liability policy on a 1981 Buick Skylark to Gladys Mesmer...

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