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Insurance
Bad Faith
Fraud

Margaret Wilson v. United Services Auto Association

Published: Oct. 25, 1997 | Result Date: Sep. 19, 1997 | Filing Date: Jan. 1, 1900 |

Case number: BC151143 –  $0

Judge

Ricardo A. Torres

Court

L.A. Superior Central


Attorneys

Plaintiff

John C. Taylor
(Taylor & Ring LLP)

Brian J. Panish
(Panish, Shea, Boyle & Ravipudi LLP)


Defendant

Lance Orloff

Paul R. Fine
(Daniels Fine Israel Schonbuch & Lebovits LLP)


Experts

Plaintiff

Richard A. Rosenberg
(medical)

Jerry A. Ramsey
(technical)

Bernard R. Martin
(technical)

Defendant

Boyd A. Veenstra
(technical)

Facts

In July 1994, plaintiff Margaret Wilson, a 32-year-old teacher, was struck by an uninsured motorist. Wilson made a claim under her United Services Auto Association (USAA) policy the same day. Although USAA paid her medical bills, USAA disputed whether Wilson had a herniated disk, whether it was caused by the accident, and whether she needed surgery. Wilson's attorney, Craig Rackohn, made a settlement demand for $300,000 (policy limits.) USAA offered $60,000 one week before the arbitration hearing. The plaintiff brought this action against the defendant based on bad faith, fraud and emotional distress theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $1 million later reduced to $850,000 at trial. The defendant made an offer of compromise for $50,000 at trial.

Other Information

The UM arbitration award was issued approximately one year and three months after the demand for arbitration was served. Per plaintiff, the jury found bad faith but no causation. An arbitration hearing was held in the underlying case on Sept. 18, 1995 before Judge Robert London of JAMS resulting in a $128,500.00 award.

Deliberation

10 hours

Poll

10-2 (no legal cause), 9-3 (breach of the covenant of good faith and fair dealing)

Length

10 days


#79698

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