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CONFIDENTIAL

Aug. 17, 1995

Breach of Contract
Insurance Bad Faith
Worker's Compensation Claim

Confidential

Settlement –  $200,000

Court

L.A. Superior Central


Attorneys

Plaintiff

Bruce Janger


Defendant

Lawrence R. Katzin

Karen L. Robinson
(Orange County Superior Court)

Douglass H. Mori


Facts

On January 9, 1980, an employee of Plaintiff school district suffered an on-the-job injury. Plaintiff had Workers' compensation insurance with Defendant A. Plaintiff's Workers' compensation claims were administered at the time by Cross-defendant C and later by Defendant B. Defendant A provided coverage beyond the self-insured retention of $100,000 and was to be notified when a claim approached that threshold. Cross-defendant C, the claims administrator at the time of the injury, did not report the claim to Defendant A for a number of years, although the exact length of time was in dispute. After the claim was reported and Defendant B had taken over as claims administrator for the school district, Defendant B allegedly failed to report to Defendant A, a settlement demand from the applicant which would have resolved the Workers' compensation claim more cheaply than ultimately proved to be the case.

Settlement Discussions

Offers and/or demands, exchanged prior to this result, were not disclosed.

Damages

Plaintiff claimed $225,000 in damages; and Defendant B claimed $51,000.


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