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CONFIDENTIAL

Apr. 13, 1996

Insurance
Breach of Contract
Bad Faith

Confidential

Settlement –  $400,000

Court

USDC Southern District of California


Attorneys

Plaintiff

Craig A. Miller
(Miller & Calhoon)

Harvey R. Levine


Experts

Plaintiff

Harry A. Woods Jr.
(medical)

Harold C. Cox
(technical)

Defendant

Charles Ettari
(medical)

B.B. Yarbrough
(technical)

Facts

The plaintiff, a 52-year-old real estate broker, could not perform the substantial and material duties of his profession because of various mental problems. The defendant insurance company first denied his claim and then agreed to pay disability benefits. After a buy-out attempt proved unsuccessful, the defendant sent the plaintiff to an independent medical examination. The medical examiner determined that the plaintiff was no longer disabled and the defendant terminated the plaintiff's claim. The plaintiff brought this action against the defendant based on tortious breach of contract theories of recovery.

Settlement Discussions

No settlement discussions (formal) were entered into before the settlement conference.

Damages

The plaintiff claimed $72,000 in contractual damages in addition to damages for emotional distress and punitive damages.

Other Information

The settlement was reached approximately two years and three months after the case was filed. A settlement conference was held on September 2, 1995, before the Hon. Lawrence Irving resulting in the settlement.


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