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CONFIDENTIAL

Feb. 18, 2004

Insurance
Breach of Contract
Breach of Implied Covenant of Good Faith and Fair Dealing

Confidential

Settlement –  $240,000

Judge

Richard Fruin

Court

L.A. Superior Central


Attorneys

Plaintiff

John C. McCarty

Neil Pedersen


Defendant

Tejas D. Patel


Experts

Plaintiff

Jerry A. Ramsey
(technical)

Defendant

Robert Mangine
(technical)

Facts

The claimant insured's automobile was stolen from the front of her home, but when the claim was made to the insurer, instead of paying the claim, the respondent denied the claim, asserting that the claimant was complicit in the theft and destruction of her own car. The plaintiff's vehicle also came equipped with an anti theft system that included a transponder key rendering the vehicle extremely difficult to steal without the proper key.

Settlement Discussions

The plaintiff demanded $1 million one month before trial; lowered to $500,000 the night before closing argument. The defendant offered $100,000 within a week of the trial date. No settlement conference was held prior to trial.

Damages

Value of the stolen vehicle, approximately $16,000; lost GAP insurance on the remainder of the lease for the vehicle, $9,000, and emotional distress.

Result

The case was resolve after the jury found fraud, oppression or malice on the punitive damage question, but before the punitive damages phase of the trial began. The total settlement included Brandt fees, general and special damages and the unfair business practice claim.

Poll

11-1 (breach of contract), 10-2 (breach of implied covenant and malice, fraud or oppression)


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