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Insurance
Bad Faith
Declaratory Relief

Norcal Mutual Insurance Company v. Hamel Out-Patient Surgery Center

Published: Aug. 8, 1998 | Result Date: Jun. 19, 1998 | Filing Date: Jan. 1, 1900 |

Case number: 755040 Verdict –  $0

Judge

Raymond J. Ikola

Court

Orange Superior


Attorneys

Plaintiff

Blaise S. Curet

John P. DiTomo


Defendant

John W. Sheller

Robert K. Scott
(Newmeyer & Dillion)


Experts

Plaintiff

Nino D. Crisafulli
(technical)

Defendant

Joseph D. Davis
(Law Offices of Joseph D. Davis) (technical)

Harry Iverson
(technical)

James M. Goodman
(Hassard Bonnington LLP) (technical)

Facts

In 1995, the underlying plaintiff obtained judgment against defendant Out-Patient Surgery Center in excess of its insurance policy limits. The plaintiff, Norcal Mutual Insurance Company, contended that the policy limits of $1 million were intact. Defendant Out-Patient Surgery Center contended that plaintiff Norcal breached the implied covenant of good faith by failing to settle the underlying lawsuit and was, therefore, liable for the entire amount of the underlying judgment. The plaintiff brought this declaratory relief action.

Settlement Discussions

Plaintiff Norcal offered the remaining policy limits. Out-Patient claimed the amount of the underlying judgment, $7 - 11 million.

Other Information

The verdict was reached approximately two years and seven months after the case was filed. MEDIATION: A mediation was held on March 27, 1998, before retired justice Edward Panelli of JAMS resulting in no settlement.

Deliberation

1½ days

Length

five weeks


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