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Insurance
Bad Faith
Interference with Prospective Economic Advantage

Hawthorne Savings v. Reliance Insurance Co. of Illinois

Published: Feb. 19, 2003 | Result Date: Jan. 17, 2003 | Filing Date: Jan. 1, 1900 |

Case number: 9913119DT Verdict –  $950,000

Judge

Dickran M. Tevrizian

Court

USDC Central


Attorneys

Plaintiff

Jeffrey A. Tidus


Defendant

Joan Marie M. Cotkin
(Pillsbury Winthrop Shaw Pittman LLP)


Facts

Hawthorne Savings and its former president were sued by a customer for fraud, and for allegedly interfering with a prospective business opportunity in a suit seeking disgorgement of profits from the bank, return of loan fees and punitive damages. Hawthorne settled the case on behalf of the bank and the officer for $700,000. All told, Hawthorne paid out $950,000 in excess of its deductible under its directors and officers liability policy.

Settlement Discussions

The plaintiff's final demand was $675,000; the defendant's Rule 68 offer was $250,000.

Damages

Out-of-pocket loss of $950,000.

Other Information

Motion for declaratory judgment is pending. Post-trial motions for judgment notwithstanding the verdict and for new trial is pending. Reliance is in liquidation and there is an issue whether the court had jurisdiction to try the case.

Deliberation

two hours

Poll

8-0

Length

3.5 days


#122126

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