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CONFIDENTIAL

Dec. 5, 1998

Insurance
Bad Faith
Failure to Pay

Confidential

Settlement –  $1,500,000

Judge

William L. Bettinelli

Court

Sonoma Superior


Attorneys

Plaintiff

MaryClare Lawrence

Susan Amato


Defendant

Julia A. Molander

Moris Davidovitz
(Davidovitz and Bennett LLP)

Stephen J. Gay


Facts

In February 1993, plaintiff was rear-ended by ambulance and suffered brain injury. A jury returned a verdict of $1.2 million in the personal injury trial. However, the driver's insurer denied defense/coverage. On appeal from summary judgment, coverage was found based upon a county ordinance. After reversal in appellate court, primary insurer paid $500,000 policy limits plus $267,253.03 in interest. The excess insurer refused to pay claiming primary liable and/or verdict obtained through collusion. The plaintiff brought this action against the defendants based on a bad faith theory of recovery.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand in the underlying action for $500,000.

Injuries

The plaintiff suffered brain damage from auto accident, inability to seek early treatment due to insurer's failure to pay and emotional distress.

Other Information

The settlement was reached approximately two years after the bad faith case was filed and 5+ years after the accident. A mediation before retired judge William A. Bettinelli, resulted in payment of an additional $800,000, of which the primary insurer paid $533,333.34 and the excess carrier paid $266,666.66.


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