Facts

The three adult plaintiffs were the children of Kathleen Murray, who was struck as a pedestrian by an uninsured motorist in May 2009 and died a month later.

Plaintiffs made a claim for the uninsured motorist benefits of $1.5 million, under their mother's automobile policy. The primary carrier eventually paid its $500,000 policy limits.

The excess carrier, United States Liability Insurance Co. (USLI) refused, claiming that because excess uninsured motorist policies are not subject to the Insurance Code, that wrongful death damages were not covered and that the policy only covered the medical and funeral expenses.

USLI also argued that it could not pay the medical expenses because of a Medicare lien, which plaintiffs refused to resolve.

Plaintiffs sued USLI for the benefits and for bad faith.

USLI filed an interpleader action against plaintiffs and Medicare, impleading the disputed limits.

Medicare removed that action to federal court. The federal court eventually remanded the interpleader action back to the state court and it and the bad faith action proceeded to trial.

PLAINTIFF'S CONTENTIONS:
Plaintiffs claimed that USLI unreasonably denied and then delayed payment of the uninsured motorist benefits.

DEFENDANT'S CONTENTIONS:
USLI claimed that it was reasonable to question whether wrongful death benefits were covered under the policy given the controlling policy language. USLI owed a direct duty to Medicare to protect Medicare's interest and it would have been a violation of that duty to pay the benefits only to plaintiffs.

Injuries

Plaintiffs claimed emotional distress damages.

Result

Verdict for $1,996,482.

Other Information

In addition to the verdict, plaintiffs settled with a third party in the wrongful death case for an undisclosed amount.

Length

26 days