This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Insurance
Bad Faith
Disability Payments

Janet LaFleur v. Provident Life and Accident Insurance Company

Published: Jun. 7, 1997 | Result Date: May 12, 1997 | Filing Date: Jan. 1, 1900 |

Case number: CV962645LGB Verdict –  $0

Judge

Lourdes G. Baird

Court

USDC Central


Attorneys

Plaintiff

Christian J. Garris
(Law Office of Christian J. Garris)

Robert K. Scott
(Newmeyer & Dillion)


Defendant

Stephen H. Galton


Experts

Plaintiff

David E. Fisher
(medical)

Barbara J. Paull
(technical)

Defendant

Hugh D. Greer
(medical)

Facts

Plaintiff Janet LaFleur, a 38-year-old single parent, was insured under an individual disability policy issued by defendant Provident Life. The policy provided a $2,400 per month benefit for total disability from the insured's occupation until the age of 55. The plaintiff, a dental hygienist, went on disability in April 1989 due to carpal tunnel syndrome and tenosynovitis. While on disability, the plaintiff completed the requirements for a bachelor's degree at UCSD, graduated Phi Beta Kappa, and then began an M.A./Ph.D. program in French at UCSB. In April 1995, the plaintiff underwent an independent medical examination, at the defendant insurer's request, by a neurologist. The examiner could find no evidence of a present disability, although he concluded on the basis of the plaintiff's history that she had carpal tunnel syndrome in remission. The examiner expressed his view that there was reasonable likelihood that the plaintiff's symptoms would re-occur if she returned to her occupation as a dental hygienist. On the basis of the examiner's report, the defendant terminated disability benefits to the plaintiff. After benefits were terminated, in June 1996, the plaintiff completed the requirements for her master's degree but had drop out of the Ph.D. program. The plaintiff brought this action against the defendant based on insurance bad faith theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand of $1.2 million, reduced to $675,000 after the defendant's motion for partial summary judgment was granted dismissing the plaintiff's punitive damage claim. The defendant made a settlement offer of $250,000.

Damages

The plaintiff claimed financial and emotional distress damages of between $500,000 and $1 million, plus attorney's fees as a result of the defendant's termination of disability benefits.

Injuries

The plaintiff also sought past and future disability benefits totaling $378,000.

Other Information

The verdict was reached approximately one year and two months after the case was filed. A settlement conference was held on Feb. 10, 1997 before Magistrate Judge Wistrich. It did not resolve the matter. Per defense counsel, the settlement judge, favored the plaintiff's position and was therefore ineffective in helping bring about a settlement.

Deliberation

6 hours

Poll

12-0

Length

5 days


#79623

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390