Confidential
Settlement – $850,000Facts
On March 6, 1996, defendant insurance company insured the plaintiff, an 82-year-old, who was driving an automobile in Twenty-nine Palms when he ran over and killed a 22-year-old marine. Six weeks after the accident, the defendant insurance company unconditionally offered plaintiff's $15,000 policy limits to the widow. After receiving defendants' offer, the widow and her counsel undertook an extensive asset search on plaintiff, only to find he had no significant assests. Thus, on July 15, 1996, widow's counsel forwarded a letter to defendant insurance company stating that the widow would accept plaintiff's $15,000 policy limits in return for a complete release as long as payment was received by Aug. 1, 1996. Defendant insurance company received the demand on July 18, 1996. On July 22, a claims representative for the insurance company wrote to the widow's counsel indicating that the insurance company investigation was continuing on the heir issue and that in the absence of other verification of the non-existence of other potential heirs, the insurer was requesting a written guarantee from the widow's counsel that should any heir come forward, counsel would be responsible for payment to those heirs. The defendant insurance company did not forward the $15,000 policy limits by Aug. 1, 1996. On Aug. 5, 1996, defendant insurance company abandoned its request for a written guarantee from the widow's counsel regarding heirs but requested the production of a death certificate. On Aug. 20, 1996, the widow forwarded the death certificate, but indicated that the $15,000 policy limits would no longer be accepted. A lawsuit was filed by the widow against the defendant's insured. Five days before the first scheduled trial date, defendant's insured declared bankruptcy. Plaintiff's potential bad faith claim against the insurance company was eventually declared an asset of the bankruptcy estate. The Bankruptcy Court lifted the stay allowing the wrongful death case to proceed to trial and assigned to the insured's bankruptcy trustee all of insured's rights to prosecute a bad faith action against the insurance carrier. On April 22, 1998, a Joshua Tree jury returned a verdict in favor of the widow and against the insured for $750,000. Insurance company paid plaintiff's $15,000 policy limits, but refused to pay the rest of the wrongful death judgment. The bankruptcy trustee then proceeded against the insurance for bad faith.
Settlement Discussions
There were no settlement discussions between the parties until an all day voluntary settlement conference was held in front of retired Justice Howard B. Weiner, at which time the case settled.
Damages
$750,000 judgment, plus interest on the judment, as well as a potential punitive damage claim on behalf of the estate against the defendant insurance company.
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