Confidential
Settlement – $75,000Judge
Court
L.A. Superior Norwalk
Attorneys
Plaintiff
Defendant
Stephen H. Turner
(Lewis, Brisbois, Bisgaard & Smith LLP)
Facts
The plaintiff tow truck company had contracts with the Metropolitan Transit Authority and the California Highway Patrol to tow disabled vehicles from the freeways. The plaintiff also did private towing. On June 1, 1994, the plaintiff purchased vehicle insurance coverage for his vehicles and drivers utilizing the defendants as his agent. The defendant broker was a licensed insurance broker. On Dec. 7, 1994, the plaintiff paid his monthly insurance premium directly to his insurance broker who promised to place those funds in the broker company's trust account, and then pay the insurance company for the monthly premium. The defendants deposited the plaintiff's check into their trust account, but did not pay the December premium until Dec. 30, 1995. The defendants' check to the insurance company was returned to the defendants on Jan. 5, 1994 for insufficient funds. On Jan. 5, 1995, the plaintiff paid the January premium on the insurance to the defendants who placed those funds in their trust account, but did not pay the January premium to the insurance company. The plaintiff's insurance was cancelled on Jan. 22, 1995. The defendants paid the December premium on the insurance on Jan. 27, 1995 which did not prevent the insurance from remaining cancelled. The plaintiff was not notified that the insurance was cancelled. On Feb. 23, 1995, the plaintiff's driver was involved in a motor vehicle accident which totally destroyed the tow truck except for salvage value and caused personal injury to the driver of the other automobile. On March 2, 1995, the defendants paid the balance due on the January 1995 installment and the insurance was reinstated. The plaintiff brought this action against the defendants based on negligence and conversion theories of recovery.
Settlement Discussions
The plaintiff made a settlement demand of $100,000 at mediation. The defendants made a settlement offer of $50,000.
Specials in Evidence
$9,512 (per month for one year)
Damages
The plaintiff claimed $16,529 in property damage to the tow truck and $32,500 on the subrogation claim.
Other Information
The settlement was reached approximately one year and three months after the case was filed. SETTLEMENT CONFERENCE: A mandatory settlement conference was held on Sept. 20, 1996 before Judge John Stanton of Norwalk Superior Court resulting in the reported settlement.
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