Question about Michael Jackson 1993 trial.

The legal principle in action here is called "subrogation." Subrogation is the substitution of one party in the place of another with reference to a lawful claim, demand, or right, so that the substituted party succeeds to the rights of the other with respect to the claim, demand, or right.  This is very common in the insurance industry.  Imagine a more common scenario than the Michael Jackson matter.  Imagine a car accident in which an insurance policy holder sustains injuries and damage to his car, the other driver is at fault, and the insurance policy holder has the right to sue the other driver.  The insurance company pays the policy holder for his injuries and damages.  The insurance policy, which is basically a contract between the insurance company and the policy holder, gives the insurance company the right to step into the shoes of the policy holder for purposes of seeking damages from the other driver.  That's subrogation.  Similarly, let's assume the driver who was at fault in the accident was also covered by an automobile insurance policy. His insurance company will also exercise its right of subrogation, effectively stepping into the shoes of the driver who was at fault for purposes of defending the claim by the insurance company for the driver who was not at fault.  They are on the hook for any liability the driver who was at fault may incur, so their incentive is to negotiate the claim, avoid trial, and pay as little as possible as late as possible.  Once you understand how that process works you can apply it to the Michael Jackson case.  Like many celebrities who are constantly subject to all kinds of bizarre claims, some real, most bogus, Michael Jackson carried general liability insurance to protect himself.  Once a claim is made, his insurance company has the right to subrogate or substitute itself in the place of Michael Jackson for purposes of defending the claim.  At that point Michael Jackson loses control over how his insurance company settles the case.  Remember, the insurance company just wants to pay as little as possible as late as possible. It will settle the case and avoid a trial if in its best judgment that will minimize the potential financial exposure.