This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.


Insurance
Bad Faith
Coverage Denied

Marlon A. Herrera v. Standard Insurance Company

Published: Aug. 15, 1998 | Result Date: Jun. 17, 1998 | Filing Date: Jan. 1, 1900 |

Case number: CV967738MRP Verdict –  $0

Judge

Mariana R. Pfaelzer

Court

USDC Central


Attorneys

Plaintiff

David Lipsky

D. Scott Mohney


Defendant

Warren H. Nelson Jr.


Experts

Plaintiff

Cam Lindberg
(medical)

Defendant

Robert S. Pashman
(medical)

Julia Beck
(technical)

John M. Thompson
(medical)

Facts

Plaintiff Marlon Herrera, a 55-year-old man, claimed that defendant Standard Insurance Company (Standard) breached its contract of insurance and duty of good faith and fair dealing when it terminated the plaintiff's long term disability benefits under a group insurance policy Standard had issued to his former employer, the City of Lompoc. Defendant Standard contended that the plaintiff had been cleared for work and was working when it initially terminated his claims in December 1995; and as to a January 1996 claim of subsequent disability, that the plaintiff and his surgeon provided insufficient and contradictory evidence of disability; and the plaintiff was not disabled from all occupations. The plaintiff brought this action against the defendant based on breach of contract and bad faith theories of recovery.

Settlement Discussions

The plaintiff made a final settlement demand for $150,000. The defendant made a final offer of $80,000.

Damages

The plaintiff sought compensatory and punitive damages for bad faith and breach of contract; $160,000 for past and future benefits; $53,333 as Brandt damages; unspecified exemplary damages; and damages for emotional distress. There was no trial on tort damages as the jury found for Standard in the liability phase of trial.

Other Information

The verdict was reached approximately one year and nine months after the case was filed. SETTLEMENT CONFERENCE: A final settlement conference was held on June 8, 1998, before U.S. District Court Judge William M. Byrne Jr. resulting in no settlement.

Deliberation

10½ hours

Poll

8-0

Length

five days


#114973

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390