Confidential
Settlement – $360,000Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Facts
In September of 1992, an underlying suit was brought against Plaintiff (in the instant action) by the parents of one of the children in her neighborhood, alleging that Plaintiff negligently entrusted the child and other neighborhood children to a resident of Plaintiff's home, who subsequently molested the children. Both negligent and intentional conduct was alleged against Plaintiff, but it was not alleged that she had been a participant in the molestations. On November 10, 1992, Plaintiff tendered her defense to Defendant insurance company, pursuant to her homeowner's policy. Defendant denied coverage and argued that since the claim arose out of child molestation, coverage was precluded under J.C. Penney Casualty Ins. Co. v. M.K., 52 Cal. 3d 1009 (1991). Plaintiff subsequently brought suit against Defendant for breach of contract and breach of the implied covenant of good faith and fair dealing. Both parties filed motions for summary judgment/adjudication, asking the Court to determine whether the policy provided coverage to Plaintiff for the allegations of the underlying action. The Court determined that a defense was owed and granted Plaintiff's motion. Plaintiff then pursued her bad faith cause of action.
Settlement Discussions
Plaintiff contends she demanded $480,000 one month before the voluntary settlement conference and that Defendant made no response.
Damages
$60,000 Brandt fees; unspecified emotional distress damages.
Other Information
A settlement was reached after a settlement conference before the Honorable Gerald Lewis (Retired).
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