Confidential
Settlement – $5,275,000Judge
Court
San Diego Superior
Attorneys
Plaintiff
Brian L. Burchett
(The Burchett Law Firm)
Charles R. Grebing
(Wingert, Grebing, Brubaker & Juskie LLP)
Craig R. McClellan
(The McClellan Law Firm)
Defendant
Experts
Plaintiff
Jerry A. Ramsey
(technical)
Bernard R. Martin
(technical)
Facts
The defendant, Transport Insurance Company (TIC) issued a liability policy to Jackson's Just For You, a Los Angeles based towing company. The defendant TIC defended Jackson's Just For You (Jackson's) in an underlying personal injury action filed by the plaintiff Pamela Henline. Kasler Corporation and The State of California were also defendants in that action. Prior to trial, Kasler and The State of California settled with Henline. These three, Kasler, Henline and The State of California, then proceeded to trial against TIC's insured, Jackson's. TIC offered, and had always offered, its $250,000 policy limits to settle the case on behalf of Jackson's before it was submitted to the jury, with the offer to be withdrawn prior to the reading of the verdict. The jury verdict against Jackson's was $8 million. Following the verdict, TIC continued to offer to pay its policy limits, but on condition that the plaintiff agree not to proceed against its insured for the balance of the judgment. While the case was on appeal, the plaintiff offered to settle with TIC and release its insured for the $250,000 policy limits, plus costs and interest on the entire judgment. TIC refused. Eventually, TIC interplead and paid its policy limits of $250,000 and the costs in the underlying action in the amount of $68,292, leaving an excess judgment of $7,327,158. The judgment was affirmed on appeal and Jackson's assigned its rights against TIC to Henline and the State of California in return for a covenant not to execute on the judgment.
Settlement Discussions
The plaintiffs were seeking the excess judgment of $7,327,158 and, at the mediation, submitted a demand of $7 million. The defendant offered $1 million. At mediation, the case was settled at $5,250,000. A mediation was held before Howard Weiner.
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