Marseya Renee Boyd v. United Pacific Life Insurance Co.
Published: Oct. 18, 1997 | Result Date: Sep. 20, 1997 | Filing Date: Jan. 1, 1900 |Case number: BC111968 – $875,287
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Michael B. Bernacchi
(Burke, Williams & Sorensen LLP)
Experts
Plaintiff
Richard B. Herzog
(technical)
Ted Vavoulis
(technical)
Facts
In 1986, claimant Boyd, then aged 12, was injured in a car accident. Litigation filed on her behalf was resolved in late 1987, by a "structured settlement," including an annuity purchased for about $340,000 from respondent United Pacific Life Insurance Co. (now called G.E. Capital Assurance Co.). The annuity provided for periodic payments to claimant's mother/guardian until she became 18, and thereafter to claimant herself throughout her life. In December 1988, claimant's mother/guardian filed a petition seeking leave of court to have the annuity "restructured" so it would pay out more money (to her) before claimant became 18. While that petition was pending, claimant's godmother (previously convicted of fraud) sent respondent several falsified documents, including a forged court order ostensibly directing that the annuity proceeds be made payable to her and delivered to her bank account in Atlanta, GA. Respondent sent a check for $335,837 - the value of the annuity at that time, to the godmother, who absconded with the funds respondent then discontinued the periodic payments. A few days later, the court granted the mother/guardian's petition to permit the annuity to be liquidated in favor of a more "front-loaded" replacement. By that time, the godmother had the money and a new annuity was never purchased. Three years later, claimant turned 18. She came to realize that no annuity payments were being made and contacted respondent. Respondent eventually acknowledged that it had been defrauded by the godmother, but nonetheless, respondent refused to make any annuity payments to claimant. The claimant brought this action against the respondent based on breach of contract and bad faith theories of recovery.
Settlement Discussions
The claimant made a C.C.P. º998 settlement demand for $550,000 in August 1995. The respondent made a C.C.P. º998 offer of compromise for a replacement annuity worth approximately $395,000 in September 1996. Per the respondent, since August 1996, the lowest settlement demand claimant and her counsel stated they would be willing to accept was $1.6 million. In September 1996, respondent made a settlement offer (partially structured) of $450,000.
Other Information
This result was reached approximately three years after the case was filed. A binding arbitration was held on Sept. 8 and 9, 1997 before Justice Robert Feinerman, (Ret.) and Retired Judges Richard P. Byrne and Dion G. Morrow resulting in the reported award. The arbitrators awarded the claimant $875,287 for breach of contract but did not find bad faith, and consequently awarded nothing for emotional distress, attorney's fees, or punitive damages.
Length
two days
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