Gustavo Perez v. Fire Insurance Exchange
Published: Jul. 8, 2003 | Result Date: May 21, 2003 | Filing Date: Jan. 1, 1900 |Case number: 01195746 Verdict – $25,863,000
Judge
Court
Tulare Superior
Attorneys
Plaintiff
Stuart R. Chandler
(Stuart R. Chandler APC)
Defendant
Experts
Plaintiff
Tom Corridan
(technical)
Defendant
Dale Briggs
(technical)
Facts
On Aug. 13, 1998, the plaintiff, Gustavo Perez, lived across Highway 63 from a dairy where he was employed as a tractor driver. He borrowed a Kubota farm tractor from his employer to use after hours on his property. He hired someone else to assist him with the work and as the helper was returning the tractor later that evening. The helper had to drive 100-150 feet down the Highway 63 to reach a dirt road to the dairy. The tractor stalled as it was traveling on Highway 63 and was hit by a large truck traveling at between 50 and 55 mph. The truck driver sustained serious personal injuries. The tractor driver fled moments before the collision. The trucker sued Perez. Perez submitted the claim to Fire Insurance Exchange (FIE), his insurer for general liability pursuant to a homeowner's policy. FIE denied indemnity and denied a defense on the basis of an alleged motor vehicle exclusion in the homeowner's policy. The claim by the truck driver resulted in a default judgment of $413,000. The policy limit was $300,000.
Settlement Discussions
No specific offers were made although the range of $50,000 to $60,000 was mentioned at mediation. The plaintiff submitted a demand of $250,000 raised to $299,000 (C.C.P. Section 998) after the defendant lost its motion for summary judgment; raised to $550,000 the week before trial; withdrawn after the jury's compensatory award of $863,000.
Damages
The plaintiff's damages included liability on the judgment in favor of Jesus Jimenez in the amount of $413,000 plus interest (which totaled almost $540,000 by the time of trial). Additionally, he sustained injuries in the form of anxiety, worry, distress etc. associated with the financial burden placed upon him by virtue of the default judgment entered against him.
Result
The trial judge granted the plaintiff's motion for a directed verdict, ruling that the policy provided coverage for the loss and that FIE breached the contract by refusing to indemnify and refusing to provide a defense. On the issue of bad faith, the jury agreed that FIE was unreasonable in its conduct toward the plaintiff.
Other Information
The plaintiff did not present to the jury a specific figure for punitive damages but suggested, by way of an analogy, a figure in the $5-$10 million range.
Deliberation
2.25 hours (compensatory), 1.25 hours (punitive)
Poll
12-0 (contractual damages), 12-0 (extra contractual economic damages), 11-1 (extra contractual non-economic damages)
Length
nine days
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