Los Robles Child Development Center, et al. v. Pacific Employers Insurance Company
Published: Mar. 28, 1998 | Result Date: Mar. 2, 1998 | Filing Date: Jan. 1, 1900 |Case number: KC023506 Verdict – $369,750
Judge
Court
L.A. Superior Pomona
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Stephen D. Prater
(technical)
Defendant
Thomas M. Correll Esq.
(technical)
Facts
Plaintiff Carolyn Mueller, owner of Los Robles Child Development Center, a Montessori school, bought a general liability insurance policy from defendant Pacific Employers Insurance Company. The school was sued by a 3-year-old student who fell and broke his arm on the school's playground. The student's complaint alleged child abuse and negligent supervision of other students who allegedly attacked the student. The defendant declined to tender a defense to plaintiffs because the insurance policy contained an abuse and molestation exclusion. Plaintiffs were forced to hire attorneys to defend the underlying action and that action resulted in an arbitration award in favor of Los Robles Child Development Center. The plaintiffs brought this action against the defendant based on breach of contract, breach of implied covenant of good faith and fair dealing and emotional distress theories of recovery.
Settlement Discussions
The plaintiffs made a settlement demand for $150,000. Per defendant, plaintiff offered $250,000 which was reduced to $150,000 at trial. The defendant made an offer of $18,000, later raised to $125,000 after the first day of trial.
Damages
The plaintiffs claimed $307,755 in damages for lost profits and attorney fees. Defendant reported plaintiff also sought an undefined amount in lost profits.
Injuries
The plaintiff claimed emotional distress.
Other Information
The verdict was reached approximately one year and seven months after the case was filed. ARBITRATION: An arbitration was held before the Hon. Francis Garvey, retired, resulting in a plaintiff award of $35,000 (according to defendant). Judge C. Edward Simpson granted a directed verdict on the issue of punitive damages and, as a result, that issue never went to the jury.
Deliberation
four hours
Poll
12-0 (breach of contract), 10-2 or 9-3 (bad faith-varied reports)
Length
seven days
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