The Second Appellate District reversed an order imposing sanctions. The court held that sanctions against a nonparty insurer for failure of its adjuster and counsel provided to defend the insured to negotiate in good faith at a mandatory settlement conference were not authorized by statute or court rule.
Miguel Vidrio, Jr. and Patricia Salinas allegedly suffered injuries as a result of an auto accident. They sued Maria Hernandez, the driver of a car that hit their car, claiming the accident resulted from Hernandez’ negligence. Hernandez was insured by Mercury Insurance Company, which provided her with a defense.
