Confidential
Settlement – $900,000Mediator
Court
USDC Northern
Attorneys
Plaintiff
Defendant
Facts
In December 1995, the plaintiff, a 32-year-old unemployed woman, was a passenger in a car insured by the defendant insurance company. The car was rearended by an uninsured motorist which aggravated the plaintiff's pre-existing back problems. The plaintiff made a claim for benefits under the driver's insurance policy, which included $100,000 in uninsured motorist limits, $10,000 medical payments limits, and $15,000 in income continuation benefits. The medical payments limits were fully paid 21 months after the accident. When the insurance company finally offered the uninsured motorist policy limits two years after the accident, it demanded a bad faith release. Two months later the insurance company offered the uninsured motorist policy limits unconditionally. The insurance company failed altogether to advise the plaintiff of her right to receive the $15,000 in income continuation benefits. The plaintiff brought this bad faith action against the defendant based on breach of contract and breach of covenant of good faith and fair dealing theories of recovery.
Settlement Discussions
The settlement discussions were not disclosed.
Injuries
The plaintiff alleged that she suffered substantial pain and suffering damages because she was forced to delay a required back surgery about a year as a result of the insurance company's delay. She also alleged emotional distress and financial distress and sought punitive damages.
Other Information
The settlement was reached approximately four months after the case was filed. A mediation was held on June 19, 1997 before Justice Edward Panelli, retired of J.A.M.S./Endispute resulting in the reported settlement.
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