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CONFIDENTIAL

Aug. 27, 1994

Breach of Contract
Insurance Bad Faith
Malicious Prosecution

Confidential

Settlement –  $880,000

Judge

Ernest G. Williams

Court

L.A. Superior Central


Attorneys

Plaintiff

Joseph J. Ryan


Facts

On February 25, 1983, a high school student suffered brain injury from a wood-working lathe accident. In April 1987, (in the underlying action) the lathe manufacturer cross-complained for indemnity against the lathe distributor. The manufacturer's insurance company and others had settled with the high school student for $1,500,000. The underlying trial ended in a verdict for the distributor; the distributor and the president of the distribution company then filed a complaint on July 19, 1989, against the manufacturer's insurance company for malicious prosecution.

Settlement Discussions

Plaintiffs contend they made a statutory demand of $250,000 (prior to trial); $500,000 (during trial); and $350,000 (during appeal). Plaintiffs further contend Defendant made no offers prior to trial and that Defendant offered $150,000 (during trial); $250,000 (during appeal); and $880,000 (post appeal).

Damages

Not specified.

Other Information

In 1992, the instant case was tried and ended in a verdict against Defendant insurer in the amount of $654,000. Subsequent to the Court of Appeal's unanimous affirmance of the jury's verdict in June 1994, and during the time available in which to petition the Supreme Court for review, the parties settled the action for the sum of $880,000. Plaintiffs and Defendant stipulated that the judgment entered on the jury verdict would be set aside and the record thereof expunged.


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