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2554 In an action against a liability insurer for failing to defend the insured, settlement of the claim against the insured raises a presumption as to the insured's liability, and the insured's agreement as part of the settlement to refrain from using copyrighted materials of the claimant establishes a presumption that the insured had no right to use those materials, so the insurer cannot be liable for damages resulting from the insured's inability to use the materials.CitationMIDIMAN v FARMERS (Copied Sounds) 76 CA4 102 [See: Gray v Zurich 65 C2 263; SD Fed CU v Cumis 162 CA3 358; CivC 2860(b); Lamb v Belt 3 CA2 624; Isaacson v CA Ins 44 C3 775; Xebec v NU 12 CA4 501; Pruyn v Agricultural 36 CA4 500, T/AT 8/95]
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