Facts

On June 14, 2007, Sergio Avila Sr., who was 48 years old and disabled, was taking his son, Sergio Avila, Jr., to work when his vehicle was struck by another vehicle operated by William L. Martin. Martin allegedly failed to see the stop sign and negligently entered the intersection occupied by Avila's vehicle, striking it and killing Sergio Avila Sr. The impact also injured his son, who also witnessed his father's death. At the time of the collision, Martin was insured with minimum limits of $15/30 and denied that he was in the course and scope of any employment.

A lawsuit was filed alleging damages for wrongful death and personal injuries. The heirs of Sergio Avila Sr., which included his wife, Rosa, and three adult children, brought the suit.

The suit also included a claim for personal injuries (injured leg and back) and a claim for negligent infliction of emotional distress by Sergio Avila Jr.

A claim was also asserted for a stepdaughter (wife Rosa's daughter from a previous marriage) who had been receiving minimal financial support from Sergio Avila Sr. at the time of his death.

PLAINTIFF'S CONTENTIONS:
During the course discovery, it was learned at the time of the accident that Martin was working for American Drywall Services and going to a work site. He was transporting two other workers and hauling tools and equipment in this vehicle. As a result, the plaintiffs alleged that Martin was in the course and scope of his employment due to the fact that his activities were for the benefit of the employer. Yamaguchi v. Harnsmut (2003) 106 Cal.App. 4th 472, and Farmers Insurance Group v. County of Santa Clara (1995) 11 Cal.App. 4th 992.

DEFENDANT'S CONTENTIONS:
The defendant employer denied the course and scope of Martin's employment. Martin's attorney, due to his client's low insurance limit supported the allegation. The employer was insured with a liability police of insurance in the amount of $1 million.

Settlement Discussions

The plaintiffs made a demand for the driver limit of 15/30 and the employer's limit of $1 million.

Damages

Plaintiffs Rosa Maria Avila, Elvira Avila, Cesar Avila and Rosa Elia Rivas recovered damages based on the wrongful death of Sergio Avila Sr. Sergio Avila Jr. 21, recovered damages based on a claim for personal injuries and negligent infliction of emotional distress.

Result

On Jan. 11, 2008, at a court-ordered mediation before Lee M. Jacobson of Jacobson, Hansen, Najarian & McQuillan, the defendants settled the case in its entirety for $1,005,000.