Bad Faith Blog

Summary: Bamford filed suit against Regent to recover for bad faith after Regent refused to settle a car accident case within its $6 million policy limit leading to an adverse verdict and judgment for $10.6 million. At trial in the bad faith case, the jury awarded the Bamford approximately $2 million. On appeal, the court held that Bamford presented sufficient evidence that Regent acted in bad faith in failing to settle the plaintiffs’ claims within the policy limits.

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.

Summary: Ethel Nelson’s car struck Mary Busby on June 10, 1964 after Busby stepped onto the street. Nelson had an automobile insurance policy from Tri-State Insurance Company with a policy limit of $10,000. Busby made two settlement offers within the policy limits, but Tri-State refused both. At trial, the jury apportioned fault between Busby and Nelson and ultimately awarded Busby a total of $16,250, $13,000 to Busby herself and $3,250 to her husband (the first judgment). Nelson’s insurer, Tri-State, paid only the $10,000 policy limit.