Confidential
Settlement – $8,000,000Judge
Court
L.A. Superior Pomona
Attorneys
Plaintiff
William D. Chapman
(MBK Chapman PC)
Defendant
Experts
Plaintiff
Lawrence Miller M.D.
(medical)
Jan Roughan R.N.
(technical)
Lester M. Zackler M.D.
(medical)
Eric R. Steinwald
(technical)
Defendant
Jeffrey Bruce Wheeler
(technical)
Stanley H. Meyers
(technical)
Edward L. Workman
(technical)
A. Jubin Merati Ph.D.
(technical)
Facts
On the night of Jan. 17, 1995, the plaintiff, a 16-year-old student, the defendant and three other boys were riding in the defendant's car. The defendant was driving, and the plaintiff was riding in the front passenger seat. All five boys had been drinking beer and "horsing around" throughout the evening. While driving on the 605 freeway, the defendant jerked the steering wheel back and forth. After doing so, the defendant lost control of the vehicle, causing it to veer off to the side of the road where it collided with a utility pole and flipped end-over-end, then did a barrell roll. The plaintiff, who was wearing a shoulder restraint but not a lap belt, was thrown from the vehicle and sustained a broken neck which caused quadriplegia and permanent paralysis. The plaintiff brought this action against the defendants, the driver and his parents based on a negligence theory of recovery.
Settlement Discussions
The plaintiff made a settlement demand for $15 million. The defendant made a settlement offer of $3.5 million.
Specials in Evidence
$200,000 $1.5 million $17 million (per plaintiff) or $1.8 (per defendant)
Damages
The plaintiff claimed $20 million in damages.
Injuries
The plaintiff suffered permanent C5 quadriplegia.
Other Information
The settlement was reached approximately one year and two months after the case was filed. Informal settlement meetings were held on April 16, 1996 and April 30, 1996 at the plaintiff counsel's office. The settlement was entered into by way of a stipulated judgment against the defendants. As part of the settlement agreement, the plaintiff signed a Covenant Not to Execute on the judgment, and in turn, the defendants executed an assignment of their rights to sue their insurance company for bad faith on the excess judgment. The defendant's insurance company participated in all aspects of the negotiation of this settlement and were also signatory on the settlement agreement. The plaintiff is preparing a complaint for a bad faith cause of action against the defendant's insurance company.
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