Facts

On May 27, 2004, plaintiff Judy Terwilliger was traveling eastbound on Sunset in Sacramento in her Volvo stationwagon with her two children, Bethany and Steven D. Terwilliger, as passengers. They stopped at the intersection with Hazel preparing to make a right turn. At that time, their vehicle was struck behind by a Camry driven by defendant Hong Yu.

On April 13, 2006, the parties participated in a non-binding arbitration before Sacramento attorney Allan J. Owen. Following a lengthy hearing, arbitrator Owen issued an arbitration award in favor of plaintiffs, awarding total damages amounting to $192,220. In response to the defense position that the collision forces were insufficient to cause any significant injuries, arbitrator Owen wrote: "Defense attorneys and insurance companies are certainly entitled to believe that no one can get hurt in low impact rear-enders. The simple facts, however, seem to indicate that people are hurt in these accidents, especially people with significant preexisting conditions such as Mrs. Terwilliger."

Defendant Yu filed a request for trial de novo and the matter was scheduled for trial on March 27, 2007.

CONTENTIONS:
Plaintiff Judy Terwilliger claimed she sustained multiple injuries as a result of the accident, incurred nearly $100,000 in medical expenses. She underwent an anterior cervical discectomy, cervical fusion and cervical plating at C5-6 on Aug. 11, 2004. Bethany Terwilliger claimed neck and back injuries, treated 25 times with chiropractor Erwin and was discharged in 2005.

Steven D. Terwilliger claimed severe lower back pain, headaches and neck pain. Dr. Erwin diagnosed a cervical sprain and treated Steven 27 times. Steven claimed that his complaints were ongoing and that he required 40 additional treatments from his mother, who was a certified Bowen therapist.

Judy's husband, Steven R. Terwilliger, claimed that the accident caused a significant disruption of his relationship with his wife and sued for loss of consortium.

Settlement Discussions

Demand: Prior to the arbitration award, Judy Terwilliger sent a C.C.P. Section Code 998 for defendant's $50,000 policy limits with 21st Century Insurance Company. Plaintiff Steven D. Terwilliger and Bethany Terwilliger each sent C.C.P. Section Code 998 offers of $7,500. Offer: On Oct. 10, 2006, defendant Hong Mo Yu sent a C.C.P. Section Code 998 to Judy Terwilliger only, offering to settle her claim for $15,000.

Result

On March 12, 2007, two weeks prior to trial, all plaintiffs jointly demanded $20,000 in full and final settlement of all claims. Thereafter, the entire case settled for the sum of $16,600.