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Insurance
Bad Faith

Joan Bowen v. Milton and Geraldine Linder, et al.; Milton and Geraldine Linder v. Ticor Title Insurance Company, et al.

Published: Jan. 6, 1996 | Result Date: Sep. 18, 1995 | Filing Date: Jan. 1, 1900 |

Case number: C731555 –  $1,447,920

Judge

Florence-Marie Cooper

Court

L.A. Superior Central


Attorneys

Plaintiff

Douglas D. Shaffer
(Dordick Law Corporation)

Michael J. Piuze


Defendant

David V. Rose

Robert D. Weber

Robert S. Bryan


Experts

Plaintiff

J. Ronald Bean
(technical)

John Hetland
(technical)

Defendant

James R. Dorsey
(technical)

Lee Bardellini
(technical)

Facts

In 1974, oceanfront real estate in Malibu owned by Virginia Lenk was subdivided into four parcels. Lenk kept two bluff parcels overlooking the ocean. She sold the two beach front properties to two families in 1975, including the defendants/cross-complainants, Linders. In 1975, the only beach access right preserved by Lenk was a five foot wide pedestrian beach access. The defendant, Ticor Title Insurance Company ("Ticor"), insured the Linders' title to their properties. In 1976, Lenk sold the other bluff property to the plaintiff, Joan Bowen. Ticor erroneously insured that Bowen would have a driveway easement down the Linders' driveway. In 1986, the Linders installed a driveway gate that blocked auto access to a parking area at the beach. The plaintiff, Joan Bowen, demanded a key to the gate, which was refused. Bowen tendered a claim to Ticor. Ticor tried to buy the easement from the Linders, who refused to sell. Ticor then tried to pay Bowen money to compensate her for Ticor's mistake, but the plaintiff refused the money. Ticor then paid for the costs of a lawsuit Bowen brought against the Linders. The Linders tendered a defense to Ticor, which refused to provide a defense. The Linders paid for their own defense and filed a cross-complaint against Ticor for bad faith. The cross-complainants, Milton Linder, a 73-year-old attorney and his wife, Geraldine Linder, a 69-year-old housewife, filed a cross-complaint against the cross-defendants, Ticor and Chicago Title Insurance ("Chicago Title"), for bad faith and intentional infliction of emotional distress.

Settlement Discussions

The plaintiffs demanded $5,000,000 for all outstanding litigation, including the bad faith case, the Linder's malicious prosecution case (which was currently pending in another courtroom) and the Linders title insurance claim against Ticor Title (which was also pending). The defendants offered $5,000, which was increased two weeks before trial by a C.C.P. º998 offer of $1,200,000.

Damages

$65,000 (defense costs before Ticor accepted the tender of defense and repaid this amount) and $30,000 (attorneys fees after Ticor settled with the original claimants to quiet title). The defendants contended that after they paid the $65,000 (plus interest) and the easement claim was dropped, there was no duty to pay for the litigation to quiet title.

Injuries

Emotional distress.

Other Information

The jury also found that the defendants, Ticor and Chicago Title, were liable of malice, fraud and oppression. In the punitive damages phase of the trial, a mistrial was declared after deliberations had begun when the jury reported it had become a hung jury. The same jury which awarded punitive damages must have already awarded compensatory damages. The court indicated that it would not enter judgment as to Geraldine Linder's claims. If the plaintiffs had wanted to pursue punitive damages after the hung jury on that issue, they were required to renounce the entire verdict. In this case, the plaintiff, Geraldine Linder, accepted the $622,916 compensatory verdict and waived punitive damages. The plaintiff, Milton Linder, rejected the $824,999 compensatory verdict and will retry the entire case. The verdict was reached approximately six years after the case was filed.

Deliberation

7 days (compensatory), 1+ days (punitive damages)

Poll

9-3

Length

17 days


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