Facts

On Feb. 15, 2006, Leisa Johnson was in the driver's seat of her van, parked against the curb, while her husband stood outside the van chatting with her. A pickup truck came down the street, crossed over to where he stood, and hit him. Johnson was not struck, but witnessed her husband being hit by the pickup truck. He was rendered unconscious and suffered a broken ankle, requiring surgery. He ultimately made a full recovery after one year of home rehabilitation.

Johnson brought a UM claim against State Farm Mutual Automobile Insurance Co., her insurer, for bystander emotional distress.

PLAINTIFF'S CONTENTIONS:
The plaintiff witnessed the injury to her husband. The incident replayed in her mind, which caused her anxiety and excessive worry. She stopped treatment when Kaiser did not provide supportive counseling. Two-years after the accident, she still had excessive feelings of anxiety and worry.

DEFENDANT'S CONTENTIONS:
The insurer indicated that Johnson had suffered emotional distress from the hit and run incident, although limited in duration. It maintained that she had fully recovered within four months and had no further need for mental health care. It cited her ability to maintain employment and take college courses.

Settlement Discussions

The claimant last demanded $60,000 in addition to an advance of $10,000 made before counsel was retained. At the arbitration, the policy limits of $100,000 were demanded. Respondent last offered $20,000 in addition to the advance.

Damages

The claimant had $60 in co-payments from three visits to Kaiser's outpatient mental health clinic. Dr. Martin Williams, expert for the claimant, diagnosed post-traumatic stress disorder following the accident for 6 months and then development of general anxiety disorder. She needed weekly counseling for approximately two years at an estimated cost of $20,000. Dr. Joanna Berg, expert for the respondent, testified that claimant had no future need for mental health care.

Result

Arbitrator Craig Needham of Needham, Davis, Kepner & Young of San Jose awarded $65,000. State Farm was given credit for the $10,000 advance for a net award of $55,000.