Insurance Issues

State Appellate Court Rejects Plaintiff’s Claim of Bad Faith Against Insurance Company in Auto Accident Case

Published on: October 11, 2016 | by Friedman Rodman Frank & Estrada, P.A.

One state’s supreme court recently published a decision affirming a district court’s ruling in favor of the defendant in a personal injury claim. The plaintiff alleged that the defendant, an insurance company that represented the other driver involved in an accident, had unreasonably rejected her initial claim for damages related to injuries that she suffered in an auto accident. The state supreme court ultimately decided that the defendant had reasonable grounds to challenge the plaintiff’s claim because there were conflicting accounts of the accident itself, as well as the source of the injuries the plaintiff claimed to have suffered in the crash. Although the high court affirmed the ruling favoring the defendant concerning the plaintiff’s bad-faith claim, the plaintiff may still be entitled to compensation from the defendant for her injuries.

The Plaintiff’s Vehicle Is Struck by Another in the Parking Lot of an Apartment Complex

The plaintiff in the case of Holloway v. Direct General Insurance Company is a woman who was involved in an accident with a driver who was insured by the defendant. According to the facts discussed in the appellate opinion, the plaintiff and the other driver gave conflicting accounts of the accident, and police were never called to report on the crash. Although the accident occurred at a low speed, and the damage to the vehicles was relatively minor, the plaintiff allegedly suffered serious injuries from the crash. The plaintiff made a claim with the defendant for $125,000 in damages suffered in the accident.

The Defendant Disputed the Insured Was Responsible for the Collision and Denied the Plaintiff’s Claim

Based on the conflicting accounts of the accident, the defendant denied that the driver it insured was legally responsible for the injuries allegedly suffered by the plaintiff in the crash and eventually denied the plaintiff’s claim. The plaintiff filed a personal injury lawsuit against the defendant to obtain the compensation requested in her initial claim, and she also requested additional damages from the defendant, alleging that the defendant unreasonably denied her claim and acted with bad faith.

Federal Court Awards Additional Damages to Plaintiff Based On Insurance Company’s Bad Faith

Published on: September 9, 2016 | by Friedman Rodman Frank & Estrada, P.A.

The United States Tenth Circuit Court of Appeals recently published an opinion affirming a federal district court’s ruling awarding a plaintiff triple damages in a breach of contract case filed against his insurance company. The plaintiff sued his insurer after the defendant refused to honor an underinsured motorist claim made by the plaintiff after another driver caused a car accident, resulting in injuries to the plaintiff. In addition to the damages initially requested by the plaintiff, the trial jury also awarded him $1.5 million in special damages because of the defendant’s unreasonable delay and denial of his initial claim. Based on the Tenth Circuit ruling affirming the jury’s award, the defendant will be required to pay the full amount to the plaintiff.

The Plaintiff Suffered a Back Injury in an Accident with an Underinsured Driver

The plaintiff in the case of Etherton v. Owners Insurance Company is a Colorado man who was injured in an auto accident in 2009. The at-fault driver was insured with $250,000 worth of liability coverage, although the plaintiff claimed to have suffered at least $1 million in damages from the crash. The plaintiff filed a claim with the defendant, his own insurance company, seeking compensation through his underinsured motorist policy for the $750,000 deficiency between the accident expenses and the other driver’s policy limit. The defendant denied the plaintiff’s claim, noting “serious questions of causation” in the plaintiff’s claim and offering only a $150,000 settlement to handle the issue. After subsequent negotiations failed, the plaintiff filed suit against the defendant to enforce the insurance policy.

State Court Waives Limitations Period for Plaintiff in Underinsured Motorist Claim

Published on: August 25, 2016 | by Friedman Rodman Frank & Estrada, P.A.

The Indiana Supreme Court recently published an opinion affirming a lower court’s ruling to allow a plaintiff’s personal injury claim to proceed against her insurance company. The defendant insurance company had argued that the underinsured motorist claim at issue was filed after the policy’s limitations period for such claims had expired and should not be permitted. The courts reasoned that the language of the underinsured motorist policy appeared to exempt such claims from the limitations period and was too ambiguous to be enforced. As a result of the recent appellate ruling, the plaintiff’s claim for damages against the defendant will proceed toward a trial.

The Plaintiff Is Injured in an Auto Accident With an Underinsured Motorist

The plaintiffs in the case of State Farm Mutual Auto Insurance Company v. Jakubowicz are a woman and her two sons, who were injured in a car accident with another driver in August 2007. According to the facts and procedural case history discussed in the appellate opinion, the woman filed a personal injury case against the other driver less than two years after the accident, seeking compensation for her family’s injuries.

As the claim against the other driver proceeded, the plaintiff learned that the other driver’s insurance coverage would be insufficient to fully compensate her for the expenses and losses suffered in the accident. The plaintiff eventually added a claim against her own insurance company, seeking compensation for damages that would not otherwise be covered through her underinsured motorist coverage, although this claim was not filed until after the three-year limitations period had expired.

State Supreme Court Reinstates Jury Verdict after Considering Jurisdictional Issue

Published on: July 5, 2016 | by Friedman Rodman Frank & Estrada, P.A.

The Michigan Supreme Court recently released an opinion that reversed a lower appellate court’s ruling setting aside a jury verdict in favor of an auto accident plaintiff over a jurisdictional issue. The plaintiff’s award had been vacated by the state court of appeals because the amount of damages that she claimed to have suffered at trial exceeded the $25,000 jurisdictional limit of the court where her initial complaint was filed. The state supreme court reversed the court of appeals’ decision, ruling that since the plaintiff’s complaint requested damages within the jurisdictional limit, and the final award was within that limit, the trial court had jurisdiction over her claim regardless of the evidence actually presented at trial suggesting damages in excess of the limit. Based on the most recent ruling, the plaintiff will receive the $25,000 awarded to her at trial, but she will not be compensated for any damages she incurred in excess of that amount.

The Plaintiff Was Seriously Injured in an Accident with a Driver Insured by the Defendant

The plaintiff in the case of Hodge v. State Farm Mutual Auto Insurance Company was a woman who was struck by another vehicle while driving and suffered serious injuries. After sustaining the injuries, the woman filed a personal injury lawsuit against the insurance company that represented the other driver.

The plaintiff’s suit was filed in a county district court in Michigan, which only has jurisdiction over claims demanding $25,000 or less in damages. Although the plaintiff’s complaint specifically requested damages “not in excess of $25,000,” it was apparent before trial that she would present evidence demonstrating over $25,000 in damages. The district court allowed the case to proceed to trial, and the plaintiff was awarded approximately $86,000 by the jury, which was subsequently reduced by the judge to the $25,000 jurisdictional limit.

Plaintiff’s Underinsured Motorist Claim Denied by Appellate Court

Published on: May 27, 2016 | by Friedman Rodman Frank & Estrada, P.A.

The U.S. Court of Appeals for the Seventh Circuit recently released an opinion affirming a lower court’s ruling against the driver and two passengers involved in a car accident. The plaintiffs alleged that the settlement they received from the at-fault driver was not sufficient to cover their damages, and they sought additional relief from the insurance company covering the driver of the car they occupied. The plaintiffs attempted to use the underinsured motorist coverage included in the driver’s insurance policy to contribute to their relief, but the district court and Seventh Circuit agreed with the defendant, holding that the uninsured motorist coverage under which the claim was filed did not apply.

Plaintiffs Are Injured after Another Driver Runs Through Stop Sign, Causing a Four-Car Accident

The plaintiffs in the case of Trotter v. Harleysville Insurance Company were injured when the car they were occupying was struck at an intersection by another vehicle that drove through a stop sign. After the accident, the plaintiffs filed a personal injury lawsuit and reached a settlement with the insurance company representing the driver of the vehicle that caused the accident.

The settlement that was reached awarded a total of $500,000 to the three plaintiffs, which was shared based on the injuries each had sustained in the crash. The $500,000 settlement was for the single-accident policy limit of the liability insurance coverage, although the plaintiffs maintained after accepting the settlement that they were not made whole by the settlement and suffered more harm that should be compensated.