Atlas Mill Supply, Inc. v. State Compensation Insurance Fund
Published: Aug. 17, 1996 | Result Date: Jul. 19, 1996 | Filing Date: Jan. 1, 1900 |Case number: BC108421 – $0
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Lloyd Kirschbaum
(Law Offices of Lloyd Kirschbaum)
Defendant
Fred R. Puglisi
(Sheppard, Mullin, Richter & Hampton LLP)
Experts
Plaintiff
Arthur Joel Levine
(technical)
John Buckley
(technical)
Dennis Knotts
(technical)
Defendant
Robert Hollingshead
(technical)
David O'Brien
(technical)
Facts
The plaintiff, Atlas Mill Supply, Inc., a clothing recycler which purchases used clothing and either resells the material overseas or cuts the clothing into industrial wiping rags, purchased workers' compensation insurance from the defendant, State Compensation Insurance Fund, beginning in the mid-1960s until July 1, 1990. During the last five policy years, the plaintiff's employees suffered over 220 injuries, including many finger lacerations from the cutting machines and back strains from lifting and pushing clothing bales weighing up to 1,000 pounds. The defendant covered each claim made by the plaintiff's employees and paid 94 percent of the premium it collected from the plaintiff to the plaintiff's employees in the form of benefits. The plaintiff brought this action against the defendant based on breach of the duty of good faith and fair dealing and negligence theories of recovery.
Settlement Discussions
The plaintiff made a settlement demand for $200,000, increased to $250,000 after the defendant's motion for partial nonsuit was granted. The defendant made a settlement offer of $10,000.
Damages
The plaintiff claimed $313,143 in damages resulting from the alleged increase in premiums paid during the 1990 through 1993 policy years and the alleged decrease in dividends paid by the defendant for the 1989 policy year. The plaintiff also sought punitive damages.
Other Information
The verdict was reached approximately two years after the case was filed. The trial court granted the defendant's motion for partial nonsuit on the plaintiff's claim for punitive damages and on its claim for negligence.
Deliberation
2 days
Poll
12-0
Length
30 days
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