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Breach of Contract
Insurance Bad Faith
Failure to Pay

Mission Power Engineering v. Continental Casualty Company, et al.

Published: May 27, 1995 | Result Date: Apr. 28, 1995 | Filing Date: Jan. 1, 1900 |

Case number: SACV94637LHM –  $1,874,980

Judge

Linda H. McLaughlin

Court

USDC Central


Attorneys

Plaintiff

Cary B. Lerman

Martin D. Bern
(Munger, Tolles & Olson LLP)


Defendant

David V. Rose

Robert D. Weber


Experts

Plaintiff

Heinz Bloch
(technical)

Jerry A. Ramsey
(technical)

Defendant

John W. Furness
(technical)

Facts

On October 23, 1989, Defendant Continental Casualty Company (CNA) issued an errors and omissions policy to Plaintiff Mission Power Engineering, covering architectural and engineering design errors. The policy had $2,000,000 in limits and was a self-depleting policy, i.e., defense costs paid by CNA reduced the limits. Mission was sued for $120,000,000 for errors in designing a geothermal power plant. Mission settled the claim for $5,000,000 at a mandatory settlement conference which lasted 3 days (June 7, 8, and 9; 1993) and was presided over by retired Judge Fannin. Defendant CNA refused to contribute the remaining policy limits ($1,400,000) toward the $5,000,000 settlement.

Settlement Discussions

Plaintiff contends it demanded $1,000,000 and Defendant made no offers. Defendant contends it offered $250,000 and Plaintiff made no demand.

Damages

$1,394,361.

Other Information

This case was filed on June 24, 1994; ten months and four days prior to this result.

Deliberation

10.5 hours

Poll

8-0

Length

6 days


#78460

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