Confidential
Settlement – $275,000Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Facts
Plaintiffs, a church and its pastor, were insured by Defendant carrier from April 1, 1991 through April 1, 1993. In the underlying action filed on March 3, 1993, an ex-assistant pastor sued the church and its pastor, alleging wrongful termination and defamation. Defendant insurer initially refused to defend. Instead, Defendant insurer intervened in the underlying action in an attempt to strike covered claims. The intervention was eventually dismissed. On the eve of trial in the underlying action (February 24, 1994), Defendant agreed to defend and indemnify; nevertheless, the Defendant refused to pay a portion of defense fees and a portion of the total settlement. The complaint, the instant case, for tortious breach of insurance contract, was filed June 10, 1994.
Settlement Discussions
Offers and demands prior to this settlement, were not disclosed.
Damages
$6,000 of the defense fees and $15,000 (the insured's contribution) of the total settlement of $65,000; lost earnings to the church; emotional distress sustained by the pastor; and Brandt fees.
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