Confidential
Settlement – $4,300,000Judge
Mediator
Court
San Diego Superior
Attorneys
Plaintiff
Donald P. Tremblay
(Tremblay Beck Law)
Peter Q. Schluederberg
(Tremblay Beck Law)
Defendant
Edward D. Chapin
(Sanford Heisler Sharp LLP)
Experts
Plaintiff
Douglas F. Walters
(Law Office of Douglas F. Walters, APC)
(technical)
Paul Hamilton
(technical)
Defendant
Scott M. Kolod
(technical)
Gene P. Irizarry
(technical)
Facts
The plaintiffs in this case, a development company previously sued the insured of the defendant insurance company. In that underlying lawsuit in 1995, the defendant insurance company withdrew all defense benefits to its insureds one month prior to trial. The insureds then assigned all bad faith to the original plaintiffs who filed and served this bad faith lawsuit in April 1996. The plaintiffs made a claim on their policy for defense of a construction defect case. Based on the assignment of the insureds' rights, the plaintiffs brought this action against the defendant based on breach of contract and bad faith theories of recovery.
Settlement Discussions
Per the plaintiff, the plaintiff made a C.C.P. º998 settlement demand for $6,500,000. Per the plaintiff, the defendant made a C.C.P. º998 offer of compromise for $2,000,000.
Damages
Per the plaintiff, the plaintiffs claimed $7,800,000. Per the defendant, the plaintiff claimed $40 million.
Other Information
Two mediations were held and the case settled on April 2, 1998, before Justice Howard B. Weiner, retired, resulting in the reported settlement.
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