Nady Systems, Inc., etc., et al. v. Superior National Insurance Company
Published: Sep. 6, 1997 | Result Date: Jun. 6, 1997 | Filing Date: Jan. 1, 1900 |Case number: 7518708 Verdict – $0
Facts
From September 1991 to September 1993, defendant Superior National Insurance provided workers compensation insurance to plaintiff Nady Systems Inc. The plaintiffs claimed that the defendant failed to adequately investigate various employee injury claims, leading to excess premium costs for the plaintiffs and a loss of premium refunds. Defendant/cross-complainant Superior claimed that it handled all claims under the policies in compliance with the terms and conditions of the policy and prevailing industry standards and that the plaintiff/cross-defendant engaged in conduct causing its claims and/or impairing Superior's ability to defend such claims and fraudulently induced Superior to sell insurance to the cross-defendant. The plaintiffs brought this bad faith action against the defendant based on breach of the covenant of good faith and fair dealing theories of recovery.
Settlement Discussions
Per the defendant, the plaintiff made an initial settlement demand for $1 million reduced to $135,000 at mediation and the defendant made a C.C.P. º998 offer of compromise for $5,000.
Damages
The plaintiff claimed $37,000 in lost premium refunds and costs, plus punitive damages and attorney's fees. The cross-complainant claimed $9,000 in increased expenses, plus punitive damages and attorney's fees.
Other Information
The verdict was reached approximately two years and one month after the case was filed. A settlement conference was held in September 1996 before Judge William Channell. It did not resolve the matter.
Deliberation
2 hours
Poll
12-0
Length
4 weeks
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