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Insurance
Bad Faith
Indemnification

Stonehenge Homeowners Association v. Commercial Union Insurance Company

Published: Feb. 6, 1999 | Result Date: Dec. 10, 1998 | Filing Date: Jan. 1, 1900 |

Case number: 768056 Bench Verdict –  $0

Judge

Barbara Tam Nomoto-Schumann

Court

Orange Superior


Attorneys

Plaintiff

John M. Pitkin


Defendant

Robert Apfelberg


Facts

In 1992, plaintiff Stonehenge Homeowners Association brought suit against Interamerican Builders Corp. (IBC) a construction defect in action. IBC's insurer, Commercial Union, had determined it did not owe coverage in the matter. IBC was defended by other insurers who paid some indemnity on behalf of IBC. However, a portion of the $3.99 million judgment against IBC was not paid to the plaintiff. The plaintiff brought this action against the defendant asserting several theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $5 million. The defendant offered nothing other than paying contribution.

Specials in Evidence

$3,710 (Armando Ortega); $3,755 (Lidia Ortega); $1,335 (Jonathan Ortega)

Damages

The plaintiff claimed damages equal to $3.99 million, the judgment from the underlying construction defect claim against the insured developer, IBC. The plaintiff, through its assignment from IBC, demanded full payment of judgment plus interest, plus attorney fees, for a total of $5 million. The plaintiff sought punitive damages, as well as total indemnity of $3.5 million based on its assignment from IBC's other insurers.

Other Information

The verdict was reached approximately two years and one month after the case was filed. The case was trifurcated, with the first phase addressing defendant's successful claim for set-off. In the second phase, the parties agreed and the court ordered off-set of $360,000 on any remaining cause of action. In the third phase, defendant successfully disposed of the remaining allegations through motion for summary judgment.


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