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Settlement – $90,000Facts
The plaintiffs, a 20-year-old warehouseman and his wife, a 21-year-old secretary, were insured through the defendant company for automobile insurance. The plaintiffs paid their May 1995 premium six days late. (The premium was due May 17 and it was paid on May 23, 1995 and received on May 25, 1995.) On May 24, 1995, the plaintiffs were involved in an automobile accident, which resulted in a lawsuit against them. The plaintiffs claimed that the defendant refused to provide any insurance coverage due to an alleged lapse in coverage. The plaintiffs ultimately declared bankruptcy, and the plaintiff wife's driving privileges were suspended due to financial responsibility laws. The plaintiffs, husband and wife, brought this action against the defendant insurer based on breach of contract theories of recovery.
Settlement Discussions
On Sept. 12, 1996, the plaintiffs served a statutory demand for $99,000, which was reduced to $90,000. The defendant accepted on Sept. 30, 1996.
Specials in Evidence
$5,000 (per the plaintiffs) or $20,486.90 (per the defendant).
Damages
The plaintiffs sought damages for bankruptcy, due to the underlying suit, suspension of the plaintiff wife's driving privileges, loss of policy benefits and mental suffering.
Other Information
The settlement was reached approximately five months after the case was filed. The plaintiff wife's driving privileges were reinstated immediately after the settlement.
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