Facts

On April 1, 2004, Steven Kaufman, a man in his fifties, was driving on University Avenue in Berkeley with plaintiff Harold Moe, also in his fifties, sitting in the passenger seat. Defendant, Anson Tsai, fell asleep at the wheel and crashed into the rear of Kaufman's vehicle driving at a speed of about 40 mph.

PLAINTIFF'S CONTENTIONS:
Kaufman and Moe sued Tsai, contending he was negligent. They sued Tsai's parents as well for negligent entrustment. This claim was dismissed on a motion for summary adjudication, but the parents remained on the suit as owners of Tsai's car.

DEFENDANTS' CONTENTIONS:
The defendants admitted negligence but denied causation of injury. Kaufman had an abnormal lumbar x-ray one week prior to the accident.

Settlement Discussions

Plaintiffs demanded policy limits of $100,000 via a CCP 998 as to defendant Anson Tsai only. Defendants offered $100,000 on the condition that all defendants (not just Nson Tsai) be released from the suit.

Damages

Kaufman sought $123,000 in past medical costs and an unspecified amount for pain and suffering and emotional distress. Moe sought $2,000 in past medical costs and $15,000 for emotional distress.

Injuries

Kaufman suffered from fractured facets in his spine, requiring lumbar and cervical fusion surgery. He also suffered from emotional distress. Moe suffered from contusions and lacerations to his face and arms and emotional distress.

Result

Kaufman and Tsai entered into a stipulated judgment for $350,000 and Kaufman settled with Tsai's parents for $15,000. Moe settled with all defendants for $15,000. Settlement involved payment of $100,000 insurance proceeds, and an assignment of bad faith and other claims by Anson Tsai to Kaufmann in exchange for a covenant not to execute.

Other Information

Actions are pending against defense counsel for bad faith in rejecting the CCP 998 demand and against defendant's insurer for instructing them to reject it. Insurer: AAA.