Confidential
Settlement – $180,000Facts
Plaintiffs' premises were burglarized, resulting in a loss of personal property in the sum of $61,706 on November 21, 1990. Plaintiffs reported the loss to Defendant insurance company, allegedly complying fully with every request of Defendant. Plaintiffs demanded payment for their losses, and Defendant denied payment, based upon an alleged intentional and/or material misrepresentation in the application for the homeowner's rental insurance application, filled out by the Plaintiffs on May 22, 1988. In the 1988 application, the Plaintiffs answered "No" to the question, "Have you had any homeowner's claims in the last five years?" In October of 1984, Plaintiffs filed a claim for a burglary at a house they were then renting. That 1984 policy said it was a "homeowners" rental policy. Defendant claimed it could void the policy ab initio by virtue of the fact that the Plaintiffs had stated they had not made a homeowners claim in the last five years, when allegedly they did. Plaintiffs also made a homeowners' claim in 1982, slightly outside of the five-year limit. Defendants tendered the return of Plaintiffs' $3,000 paid in premiums.
Settlement Discussions
Plaintiffs contended that their demand was $200,000 at the VSC; reduced to $180,000; and Defendant made an FRCP 68 offer of $100,000; increased to $135,000. Defendants contend Plaintiffs' demand was originally $1,000,000; reduced to $600,000; then reduced to $200,000.
Damages
Plaintiffs claimed $61,706 in loss from the theft ($100 deductible).
Injuries
Emotional distress from the loss of family heirlooms and other financial problems (not the lack of insurance).
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