Confidential
Settlement – $7,200,000Judge
Court
Orange Superior
Attorneys
Plaintiff
James M. Burgess
(Burgess Law Corporation)
Frank Falzetta
(Sheppard, Mullin, Richter & Hampton LLP)
Defendant
Facts
The plaintiff insurance company insured the defendants from April 2000 to June 1, 2001. State Fund billed the defendants for $5.8 million of additional premium owed based on the highest classification code applicable to the payroll. The defendant refused to pay any of the additional amount owed. State Fund did not refuse coverage for any claim made under the policy but continued to pay such claims.
Settlement Discussions
The parties resolved the case through direct negotiations between counsel. The defendant agreed to pay all of the premium owed to State Fund, plus interest, including premiums owed by other entities owned by Perez.
Injuries
$5.8 million plus interest
Result
$7.2 million plus any other premium found to be due and owing by the defendants or other entities owned or related to Perez after further audits by State Fund.
Other Information
The case settled after the San Bernardino District Attorney and Department of Insurance served search warrants on 22 of the defendants' facilities. The defendants agreed that the terms of the settlement will become part of any restitution order in the criminal matter if there is a plea or conviction. The settlement agreement specifically provided that it will not end the criminal investigation or prosecution. The settlement is a structured settlement, part of which has been paid and part of which will be paid over time.
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