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CONFIDENTIAL

Jun. 27, 1998

Insurance
Bad Faith
Claim Denied

Confidential

Settlement –  $900,000

Judge

A. Andrew Hauk

Mediator

Diane L. Wayne

Court

USDC Central


Attorneys

Plaintiff

Michael P. McNamara


Defendant

Michael F. Bell


Facts

In 1988, plaintiff, a litigation attorney, purchased an individual non-cancellable disability insurance policy from defendant, which insured plaintiff's occupation as a litigation attorney. In 1992, the plaintiff filed a claim of disability under the insurance policy. The defendant paid monthly benefits to the plaintiff until May 1997, at which time the defendant terminated the benefits, on the basis of an IME, on the ground that the plaintiff was no longer disabled to perform the material duties of a litigation attorney. The plaintiff disputed the termination and filed her complaint against the defendant in July 1997. The plaintiff brought this action against the defendant based on insurance bad faith.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $_________. The defendant made a C.C.P. º998 offer of compromise for $_____________.

Other Information

A 1-+ day mediation was held before retired judge Diane Wayne, resulting in the reported settlement.

Length

1½ days


#101184

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