Facts

On March 31, 2013, plaintiff Alexander Pinto, 24, hitched a ride back in a pickup truck to Temecula from Lake Havasu during spring break with Alexandrea Martin and her friends, including Dana Orcutt. Martin owned the pickup truck and Orcutt was the supposed driver.
Martin was insured by Farmers Insurance for 50/100. Both Martin and Orcutt were heavily intoxicated at the time. The pickup lost control and Pinto was ejected and rendered a quadriplegic.

Plaintiff made a conditional policy limits demand for $50,000 against Martin requesting a declaration of no other insurance. Farmers insisted that Orcutt also be released, even though Orcutt would not cooperate with Farmers. She pleaded the Fifth Amendment. Martin complied with the demand, but Orcutt would not give her declaration and the demand expired.

Plaintiff filed suit and eventually entered into a stipulated judgment with assignment of Martins and Orcutt's claims for $10 million. Pinto then filed a bad faith claim against Farmers.

PLAINTIFF'S CONTENTIONS: Pinto, as Martin's assignee, contended that Farmers could not establish that Orcutt was a permissive user and hence an insured and further she did not cooperate, waiving any coverage. Plaintiff claimed that as a result, Farmers committed bad faith by insisting on including Orcutt in the release. When Oructt refused to cooperate, Farmers could not comply with Pinto's demand, even though Martin did comply. Plaintiff claimed Farmers sacrificed its named insured, Martin, to only protect themselves from a later speculative suit by Orcutt causing Martin to have a $10 million judgment against her.

DEFENDANT'S CONTENTIONS: Farmers claimed that Orcutt failed to cooperate and prevented them from accepting Pinto's demand.

Damages

Stipulated judgment $10 million against Martin and Orcutt, jointly and severally,

Result

Judgment for plaintiff in amount $9,935,000, which is $10 million minus $15,000 to set off Orcutt's personal liability policy.

Other Information

The jury also found that Ocutt failed to cooperate with Farmers and that this prejudiced Farmers. The matter is being appealed.

Deliberation

two days

Length

2.5 weeks