Botma v. Huser

In Botma v. Huser, 202 Ariz. 14, 18 P19, 39 P.3d 538, 542 (App. 2002), Himes' daughter suffered severe injuries when Botma negligently caused an automobile accident. Id. at 15 P2, 39 P.3d at 539. The parties entered a Settlement, Assignment and Covenant Not To Execute Agreement in which Botma stipulated to a $ 12 million judgment against him and assigned any malpractice claim that he had against his attorney and any bad-faith claim that he had against his insurance company in exchange for Himes' agreement not to execute against his personal assets. Id. at 16 P7, 39 P.3d at 540. Botma also agreed that Himes could file a malpractice action in Botma's name, that Himes could control the case, and that "the proceeds of any judgment in an action brought in Botma's name pursuant to this agreement will be assigned to Himes following judgment upon request of Himes." Id. Botma acknowledged the prohibition of assignments of legal- malpractice claims, but he sought an exception when a legal-malpractice claim was paired with a bad-faith/breach-of-contract claim against an insurance carrier. Id. at 18 P16, 39 P.3d at 542. The Court declined to make such an exception, affirming that "the rule in Arizona against assignments of personal-injury claims should remain the same until changed by the legislature." Id.