Respondent, whose automobile was covered by a policy of "collision" insurance in appellant insurance company, suffered serious personal injuries and complete loss of his car as a result of a collision with an oil company truck. Despite numerous telephone calls, appellant failed to settle for the cash value of the automobile, as required by the insurance contract. In the meantime, respondent brought an action against the oil company, joining the claims for personal injury and property damage, and executed a full release to that company in return for a settlement of $20,000. He then brought this action for actual damages to the automobile on the theory that appellant fraudulently breached its contract, knowing that respondent had to claim all elements of damage in the oil company suit. Appellant defended on the ground that respondent's release destroyed appellant's right of subrogation and discharged appellant's contractual liability. Held, appellant, by its conduct in failing to pay the loss when reported, waived all subrogation rights. The verdict of the jury in the present action was for $400 less than the value of the automobile and that sum represented a reasonable proportion of the $20,000 settlement allocable to the car loss. Powers v. Calvert Fire Ins. Co., (S.C. 1950) 57 S.E. (2d) 638.

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