Facts

On Oct. 4, 2010, claimant Kristy Betz, 35, was rear-ended while in her Chevrolet Tahoe by an underinsured motorist. The collision caused minor damage to both vehicles.

CLAIMANT'S CONTENTIONS:
Claimant claimed that the underinsured motorist's inattention and negligent driving caused the collision and were the sole causes of claimant's injuries and damages.

RESPONDENT'S CONTENTIONS:
Respondent disputed the nature and extent of claimant's injuries and treatment, including claims for damages related to past and future surgeries. Respondent also claimed the impact was minor, and that claimant had pre-existing conditions as the result of three prior motor vehicle accidents. Respondent argued that claimant did not report significant cervical complaints until several months after the incident.

Settlement Discussions

On Dec. 6, 2012, claimants made a joint, pre-litigation demand to Arch Insurance Co. for $780,000. On Feb. 25, 2014, Kristy Betz made a CCP 998 demand for $899,999.99 and Richard Betz made a CCP 998 demand for $99,999.99. Other than a $100,000 advance made by respondent for undisputed damages, respondent had not made any settlement offers.

Specials in Evidence

$259,575 $77,480 $100,000 to $150,000

Damages

In early 2014, claimant became employed part time as a customer service representative and would incur further wage losses, estimated at $8,596, if she has her future cervical surgery. Claimant's husband, Richard Betz made a claim for loss of consortium based on lost companionship and services of his wife, plus emotional injuries related to his wife's condition.

Injuries

Claimant claimed injuries to her neck and back. She underwent a course of conservative treatment from October 2010 through November 2011, which provided only minor relief. She was advised that she was a candidate for cervical disc replacement surgery, but opted to first undergo an epidural injection on Feb. 24, 2012. The epidural injection failed to resolve the neck complaints at which time she decided to proceed with surgery. A cervical disc replacement procedure was performed on July 24, 2012. Although she reported improvement, she still complained of muscle spasms and pain. In January 2013, claimant received two series of cervical nerve blocks and underwent radio-frequency ablation. She received a third series of cervical injections on July 30, 2013, while undergoing chiropractic treatment from February 2013 through October 2013. She was advised she was a candidate for future surgical intervention due to persistent neck complaints and was recommended sacroiliac joint injections to treat her persistent lower back complaints. Claimant's future treatment claim included a second cervical disc replacement procedure and/or fusion and sacroiliac joint injections.

Result

The case settled one month prior to mediation for $1 million UIM policy limit, plus $5,000 in medical payment benefits, less credits. Claimants' total recovery was $1,005,000. Claimants settled their third party claim against the underinsured motorist for his $100,000 policy limit. The settlement included payment towards Richard Betz's loss of consortium claim.