Greg and Gail Lewis v. Fireman's Fund
Published: Sep. 3, 1994 | Result Date: Jul. 27, 1994 | Filing Date: Jan. 1, 1900 |Case number: BC021042 – $2,800,000
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Howard C. Rile Jr.
(technical)
Jerry A. Ramsey
(technical)
Bernard R. Martin
(technical)
Defendant
Boyd Veansira
(technical)
Facts
On June 6, 1981, Plaintiffs Greg and Gail Lewis, a 27-year-old police officer and his wife, a 26-year-old UPS clerk, were both riding on a personal motorcycle on State Route 138 near Phelan. A truck owned and operated by Manchester Weed and Pest Control hit Plaintiffs in a rear end collision, severely injuring both. The husband lost both legs and suffered brain damage. Manchester (the adverse driver's employer in the underlying incident) held a 3-year, annually renewable commercial package insurance policy with Defendant Fireman's Fund with a combined single limit auto liability coverage of $500,000. The annual renewal date was June 1, 1981. Manchester alleged that it had renewed the policy and paid Defendant's agent the down payment for the policy with coverage increased to $1,000,000 (combined single limit) on the day before the accident or the day of the accident -- Fireman's Fund alleged that this did not occur until the Monday or Tuesday following the accident. The accident was reported by Manchester to Defendant's contract agent on the date of the occurrence, Saturday, June 6, 1981, and by the agent to Defendant on June 7, 1981. Defendant raised all coverage on the package policy except the auto liability to $1,000,000 effective June first, but did not raise the auto coverage until June 8, 1981, 2 days after the accident. In September of 1983, while attempting to verify coverage limits after agreeing to settle for $500,000 policy limits, Plaintiff's counsel allegedly discovered correspondence between the agent and Fireman's Fund indicating coverage had been increased to $1,000,000 at the time of the accident. Declaratory relief action was filed in December of 1983. The first trial in June of 1986 resulted in a nonsuit (acceptance of quote communicated to the agent, but not to Fireman's Fund before the accident). Nonsuit was reversed on appeal and a second trial in October of 1990 resulted in a unanimous jury verdict of $1,000,000 coverage, confirmed on second appeal in September of 1992. This fraud action followed. The underlying action was dismissed on motion by the Defendant, on August 10, 1992 for failure to prosecute; and that dismissal is on appeal.
Settlement Discussions
Plaintiffs contend their demand in November of 1990 was $6,000,000 with indications of $4,000,000; and Defendant offered $1,500,000 two days before trial (no previous offers). Defendant contends their offer was $1,500,000 with indications of $3,000,000.
Specials in Evidence
$380,000 (Greg), $120,000 (Gail) $1,600,000 (Greg and Gail) (all specials in evidence in this case are related only to the underlying incident) $890,000 (Greg) handicap accommodation expenses
Injuries
(In the underlying incident) Greg: Bilateral amputation of the legs and brain damage requiring multiple surgeries and requiring attendant care and life-long handicap accommodations. Gail: Multiple pelvic fractures requiring multiple surgeries; residual impaired gait.
Deliberation
11 hours
Poll
9-3 punitive, 11-1 compensatory
Length
8 days
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