Facts

Defendant Gerald Charette Jr., failed to stop at a stop sign and struck a vehicle containing the Reed family, Paul, Monika and their 3-year-old twin boys. The impact spun the Reed vehicle. The Reed vehicle was totaled.

The California Highway Patrol subsequently arrested Charette for driving under the influence.

Jerry's Mechanical Inc. dba Jerry's Plumbing is defendant driver's business and insured, however the accident did not occur in the course and scope of work for defendant.

DEFENDANT'S CONTENTIONS:
Defendant refuted plaintiff's claims as to the extent of her injuries sustained in the subject accident. Defendant refuted plaintiff's claims that the radiofrequency rhizolysis treatments, intended to destroy nerve endings to decrease pain at the sacroiliac (SI) joint, would cost over $20,000 per treatment, at a total present value of over $1.5 million in future medical care for Monika Reed alone.

Settlement Discussions

Plaintiff offered to settle the matter for the balance of $1 million policy limits.

Injuries

Paul and the twins had minor injuries. Monika suffered severe soft tissue injuries that caused chronic pain. She underwent physical therapy, platelet-rich plasma injections and radio frequency treatments. The treatments will be required, plaintiffs claim, periodically for her lifetime. According to defendant, Monika, who was pregnant at the time of the subject accident, alleged to have also sustained a major, lifelong SI joint injury, concussion (daily headaches), mild traumatic brain injury, post traumatic stress disorder, panic attacks, and severe pain and contusions to multiple parts of her body. Defendant asserted that plaintiff claimed her SI joint injury did not heal on conservative and subsequent injection treatments and that plaintiff also alleged ongoing cognitive dysfunction. Defendant contended that plaintiff's treatment also included chiropractic care and home exercise program.

Result

The parties agreed to $931,394.77 in settlement of all claims by Monika Reed. Pre-litigation settlements by the defending carrier (directly) totaled $68,605.23 as follows: $4,000 for each twin; $45,000 for Paul; and a $15,605.23 property damage payment to subrogee USAA for damages to plaintiff's vehicle. Total settlement, including pre-litigation, was $1 million.

Other Information

FILING DATE: Jan. 8, 2013.