Confidential
Settlement – $500,000Judge
Court
L.A. Superior Norwalk
Attorneys
Plaintiff
Defendant
Facts
On Feb. 1, 1997, the defendant conspirators conspired to stage a rear traffic collision between their passenger car and a big rig truck for the criminal purpose or insurance fraud and financial gain. The plan involved the conspirators driving their passenger vehicle onto the 710 freeway, targeting a victim vehicle that appeared to be heavily insured, driving their Mercury immediately in front of the victim then deliberately slamming on their brakes to cause the victim's vehicle to collide with conspirators' vehicle. In pursuit of the conspiracy, the conspirators located their victim, a grocery store semi-truck trailer traveling 50 miles per hour on the 710 freeway and lanes directly in front of the semi-truck trailer and then deliberately slammed on their brakes. The grocery truck's driver stopped his big rig truck fast enough to avoid seriously damaging the conspirators' vehicle and, instead, just tapped into the rear of their vehicle at approximately 5 miles per hour before coming to a complete stop, but not too fast, thereby allowing the plaintiff's decedent to come to a complete stop behind the truck without coming into contact with it. The decedents, a then 22 years old, a 21 years old and 2 years old, were traveling in a Chevrolet Station Wagon owned by the plaintiffs immediately behind the grocery truck and also came to a complete stop safely behind the grocery store truck with no impact. Shortly after the decedents' vehicle came to a complete stop, the defendant gravel company's 70,000 pound gravel truck, with defective brakes, crashed into the rear of the decedents' vehicle. Upon impact from the gravel truck, the decedents' vehicle was pushed into the rear of the defendant grocery's truck. The gravel truck continued forward, rolling over the decedents' vehicle until the gravel truck grille struck the rear of the grocery truck, pushing it forward 65-100 feet. The decedents perished from the impact and a post-collision fire. Although the conspirators fled the scene to continue staged accidents in other states, they were eventually caught, prosecuted and convicted of manslaughter for the deaths of the decedents. The conspirators are currently serving out sentences in a state penitentiary. No appearances have been made by them in civil action. In a subsequent detailed, 150-page report prepared by the California Highway Patrol and Department of Insurance investigators, the defendant gravel company's truck was determined to have defective brakes and the driver, was determined to have been following the decedents' vehicle at an unsafe distance. Conversely, the truck was determined to have no mechanical defects or conditions that contributed to the collision. The plaintiffs brought this action against the defendants based on wrongful death, negligence, conspiracy and fraud.
Settlement Discussions
The defendant/cross-complainant demanded and received $30,000 for property damage and worker's compensation lien (100 percent of lien). The driver demanded $50,000 for emotional distress.
Injuries
The plaintiffs sustained the death of son, daughter-in-law and grandchild.
Other Information
The settlement was reached approximately one year and four months after the case was filed. On Jan. 15, 1999, the court granted defendant's motion for summary judgment. As a result, the grocery defendants were dismissed but remained in the case as cross-complainants. Per the plaintiffs, the plaintiffs obtained a $3 million stipulated judgment against the defendant gravel truck owner and the defendant employer of the gravel truck driver. The stipulated judgment was obtained due to the refusal of State Farm Mutual Automobile Insurance Company and The Liberty Company to provide coverage for the accident and to represent these defendants under their respective insurance policies. Presently, the plaintiffs are proceeding with a bad faith lawsuit against these insurers through an assignment of rights from the defendants.
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