Confidential
Settlement – $515,000Judge
Court
L.A. Superior Torrance
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
John P. McKay
(technical)
Bernard R. Martin
(technical)
Defendant
David F. Peterson
(technical)
Mark B. Pepys
(technical)
Facts
The plaintiff insurance carrier's insureds were the owner and driver of tractor/trailer rig that collided with a pickup truck driven by Leamon. The accident occurred at a "T" intersection between a state highway and a gravel quarry road in rural Stanislaus County. The accident involved a head-on collision between two vehicles that occurred after the truck made a right-hand turn onto the highway from the quarry road and the pickup entered the truck's lane, going the opposite direction, in order to pass another vehicle. The pickup truck was clearly still in the opposite lane of travel to make its pass beyond double yellow lines that restricted passing in the area of the intersection. One party alleged, however, that the plaintiff's insured truck driver did not stop at the intersection before making her right turn, and made that turn while the pickup truck was in the process of making its passing maneuver. Leamon's main injury was to his right hip. He had a right hip replacement as a result of the injury and required a full hip replacement in the future. Due to Leamon's young age, it was alleged that he would need several additional hip replacement surgeries. The plaintiff insurer retained the defendant attorney to defend its insured in the Leamon action. During that time, the attorney submitted periodic defense reports to the plaintiff related to the case. Leamon submitted a $250,000 policy limit demand, which was rejected by the plaintiff based on the attorney's advice. The case was tried by the defense attorney and the jury returned a verdict of $1,314,200 against the plaintiff's insureds. The plaintiff brought this action against the attorney and his firm based on legal malpractice and indemnity theories of recovery.
Settlement Discussions
The plaintiff made a C.C.P. º998 settlement demand for $1 million.
Damages
The plaintiff claimed in excess of $1 million in damages, representing the portion of the $1,314,200 verdict that was in excess of $250,000 policy limits, plus interest.
Other Information
The settlement was reached approximately two years and one month after the case was filed. A settlement conference was held on Feb. 7, 1997 before Judge Judith Ryan, retired of resulting in the reported settlement.
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