Facts

In December 2005, defendant Ray Reynolds, a prominent speaker on how to build corporate credit, told plaintiff 21st Century Insurance Co. to remove one his many cars, a 2003 Lamborghini Murcielago, from his policy. Plaintiff had two Lamborghinis, valued at approximately $300,000 each, that he pulled on and off the policy. On Jan. 25, 2006, the car defendant said had been "sold" was totaled in a single-vehicle accident. The defendant claimed he had phoned 21st Century at 8 a.m., from the facility where the car had been stored, to request that it be placed back onto the policy. He submitted a claim, which plaintiff denied. The plaintiff sued defendant seeking a declaratory order to void coverage for misrepresentation. The defendant filed a cross-complaint for breach of contract and bad faith.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended the Lamborghini was not on the policy at the time of the accident. Records indicated defendant did not call the morning of the accident, but rather four hours after, requesting to add the car "the soonest possible," then informing plaintiff of the accident one week later. The defendant's cell phone records also showed the call was placed four hours after the accident. The plaintiff denied telling defendant that he could remove liability coverage if the car was being stored and maintain collision coverage and that such was irrelevant anyway because defendant removed the car from the policy because he "sold" it.

A customer service representative testified that she remembered defendant's original 2003 call to add the car to the policy because a Lamborghini was unique and defendant had two. In January 2006, the other Lamborghini was not on the policy, supporting the representative's recollection that it was from years before. Records revealed defendant used his primary cell and house phone all morning to make other calls at the time he allegedly called plaintiff.

DEFENDANT'S CONTENTIONS:
The defendant contended he called plaintiff using a different cell phone with an untraceable number while his cell phone charged in his office. A customer service representative told him six months after the accident that she remembered his call to add the Lamborghini to the policy. The plaintiff also told him he could maintain collision coverage while removing liability coverage if the car was in the repair shop for a lengthy period of time.

Damages

The plaintiff sought to void coverage for defendant's misrepresentations, a declaratory order that the denial was correct, and attorney fees. The defendant sought $300,000 for the value of the car and other unspecified damages.

Result

Two months prior to trial, the parties settled for payment by defendant Reynolds of $22,000 to 21st Century for fees and costs; a stipulated judgment that there was no coverage for the accident on the day of the loss; a release and dismissal of defendant's cross-complaint for bad faith with prejudice; and defendant's agreement to voluntarily cancel his policy with plaintiff and seek coverage with another carrier.