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Breach of Contract
Insurance Fraud
Maritime Law

Manuel Andrade v. Lloyds of London

Published: Jan. 15, 1994 | Result Date: Dec. 22, 1993 | Filing Date: Jan. 1, 1900 |

Case number: 545364 –  $0

Judge

G. Dennis Adams

Court

San Diego Superior


Attorneys

Plaintiff

Thomas Gilmore


Defendant

Norman Ronneberg


Experts

Plaintiff

Phillip H. Dickinson
(medical)

Defendant

Bernard Feldman
(technical)

Robert J. Dyer III
(technical)

Facts

Plaintiff Manuel Andrade, a fishboat captain, sued his employer Jorge Fishing, Inc., for maritime personal injuries which he allegedly sustained aboard the tuna seiner, Maria CJ, on July 5, 1983. After Jorge Fishing's primary insurer became insolvent, Plaintiff entered into a settlement agreement with Jorge Fishing wherein the employer consented to judgment and assigned all of its rights against its excess insurer (Defendant Lloyds of London) to the Plaintiff, in return for a covenant not to execute the judgment against Jorge Fishing or its assets. As provided for by the agreement, Plaintiff proved up his damages in the amount of approximately $1,500,000 before a U.S. magistrate. Jorge Fishing's attorneys, although present at the prove-up hearing, offered no defense to Plaintiff's liability and damages claims. The employer-assured's lawyers presented no briefs, witnesses, arguments, or cross-examination. At the end of the uncontested hearing, the magistrate awarded Plaintiff the exact amount of damages he had requested. The assignee of Jorge Fishing's rights against the excess insurer, Plaintiff took the $1,500,000 federal court judgment to the Superior Court where he sought to have the judgment in excess of $1,000,000 enforced against Lloyds.

Settlement Discussions

Defendant contends they offered $400,000 and Plaintiff demanded $800,000.

Injuries

Lumbar herniation requiring future fusion surgery.

Result

The jury unanimously found for Defendant Lloyds on all six verdicts: (1) Jorge Fishing's attorneys committed fraud with respect to the settlement agreement; (2) Jorge Fishing's attorneys committed fraud with respect to the procurement of the federal court judgment; (3) Jorge Fishing's attorneys and Plaintiff's previous lawyer acted collusively with respect to the settlement agreement; (4) Jorge Fishing's attorneys and Plaintiff's previous lawyer acted collusively with regard to the procurement of the federal court judgment; (5) Jorge Fishing breached the covenant of good faith and fair dealing and Lloyd's was prejudiced by the breach; and (6) Jorge Fishing breached the excess insurance policy's assistance and cooperation clause, causing Lloyds to suffer substantial prejudice.

Deliberation

8 hours

Poll

unanimous (6 special verdicts on fraud/collusion)

Length

3 weeks


#88277

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