Bad Faith Blog

Summary: Michelle Asermely rear-ended a vehicle driven by Mark Rendine but owned by Julieanne Bernier. Bernier had car insurance issued by Allstate Insurance Company with a policy limit of $50,000. Asermely’s lawsuit against both Rendine and Bernier went to arbitration where the arbitrator awarded Asermely $47,557.37, but also found her 25 percent at fault. Her attorney wrote a letter to the arbitrator saying that “plaintiff will accept the award of the arbitrator,” but the defendants rejected it and proceeded to trial. A jury entered a total judgment of $86,333.57, which included interest, and found Asermely 60 percent at fault. After trial, Allstate allegedly made a check out to Asermely for the policy limit of $50,000 as “final settlement of any and all claims arising from bodily injury and property damage caused by accident on 7/9/84.” Asermely refused to cash the check and instead sued to collect on the judgment. At that point, Rendine and Bernier assigned their rights to Asermely. Allstate later issued a second check for $50,000 to Asermely, but this time did not include the release language. Asermely cashed the second check, but later sued Allstate.