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CONFIDENTIAL

May 15, 1999

Insurance
Bad Faith
Fire Insurance

Confidential

Settlement –  $650,000

Judge

William C. Beverly Jr.

Court

L.A. Superior Central


Attorneys

Plaintiff

Cheryl D. Chadwick


Defendant

Teresa A. Williams

Noel Torgerson


Facts

The plaintiff owned a furniture manufacturing building in downtown Los Angeles. The plaintiff had been in business for several years. On Dec. 20, 1996, the building burned to the ground. The plaintiff's insurance claim was denied on the basis that it had been canceled for nonpayment of premium. The plaintiff sued the insurer which is in conservatorship. The plaintiff also sued the insurance agent for negligence in keeping plaintiff advised of the status of the policy. The broker contested the suit and argued that the insured committed arson. A sheriff department witness testified for the defendant that the wife of plaintiff's owner was seen near the building "hiding" in her car minutes before the fire. On cross-examination, the sheriff admitted that there was no evidence that she was hiding, and did not smell of smoke or flammable liquids. A fire department investigator testified for the defendant that accellerant detection canines identified a flammable liquid at the scene. On cross-examination, the witness admitted to various flaws in the report.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $900,000.

Damages

$______________ claimed damages for $____________ .

Other Information

The settlement was reached approximately one year after the case was filed.


#96800

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