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CONFIDENTIAL

Sep. 24, 2005

Insurance
Fraud
Unfair Competition

Confidential

Settlement –  $1,710,000

Judge

Haley J. Fromholz

Court

L.A. Superior Central West


Attorneys

Plaintiff

Antony Stuart
(Stuart Law Firm)


Defendant

Andre J. Cronthall
(Sheppard, Mullin, Richter & Hampton LLP)

Ralph Miller

Dwight Francis

Fred R. Puglisi
(Sheppard, Mullin, Richter & Hampton LLP)


Facts

Plaintiff Dana Christensen and her husband, Doug, purchased a certificate of coverage in a group health insurance policy from defendant The MEGA Life & Health Insurance Co. (MEGA). Three months after the policy/certificate was issued, Doug was diagnosed with a recurrence of bone cancer. He underwent chemotherapy and two surgeries. He died in October 2002. The Christensens amassed medical bills of several hundred thousands of dollars, which were not covered by the policy/certificate. The plaintiff sued the defendants for fraud, intentional infliction of emotional distress, and violations of California's unfair competition law.

Settlement Discussions

The plaintiff demanded $3.9 million. The defendant made a C.C.P. Section 998 Offer of $1.71 million, which was accepted.

Damages

The plaintiff claimed $550,000 in unpaid medical bills.

Injuries

The plaintiff claimed damages for emotional distress.


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