Confidential
Settlement – $243,713Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Robert W. Armstrong II
(Demler, Armstrong & Rowland LLP)
James P. Lemieux
(Demler, Armstrong & Rowland LLP)
Facts
In 1992, the plaintiff, a 53-year-old real estate agent, licensed clinical family counselor and dental hygienist, was insured under a policy of automobile liability insurance with defendant insurance company. The plaintiff was served with a complaint in the underlying action. In the underlying action, the plaintiff herein was sued for conspiring to murder her nephew by hiring hit men to kill him. The complaint included theories of negligence, assault and battery, intentional infliction of emotional distress and conspiracy and sought damages allegedly arising from reported shooting incidents, including a drive-by shooting. The plaintiff tendered her defense to the defendant insurance company. The tender of defense was accepted under a reservation of rights including reservations based upon intentional conduct and that the alleged acts did not arise out of the use of an automobile. The plaintiff demanded the appointment of independent counsel. The defendant insurance company appointed a panel attorney to defend her. At the trial in the underlying action, the jury returned a verdict against the plaintiff herein for negligence, intentional infliction of emotional distress and conspiracy to commit battery, awarding $25,000.00 in economic damages (which was reduced to $13,000.00 on remittitur) and $15,000.00 in punitive damages. The plaintiff elected to pursue an appeal. The defendant insurance company did not pay for the appeal, for some of the defense costs or for the costs awarded against the plaintiff in the underlying action. The plaintiff incurred attorney's fees and costs of $46,491 for the appeal and $18,606 in costs in the trial court.
Settlement Discussions
The plaintiff made a settlement demand for $500,000, which was reduced to $400,000. The defendant made an initial settlement offer of less than $100,000 which was increased in a C.C.P. º998 offer of compromise for $175,000 plus $65,097 (attorney's fees) and $3,616 (pre-judgment interest), which the plaintiff accepted.
Damages
$65,097 (attorney's fees and costs of the appeal in the underlying case); $3,616 (prejudgment interest); $28,000 (judgment); and unidentified amount for emotional distress.
Other Information
The settlement was reached approximately one year, one month and three weeks after the case was filed.
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