Insurer Misprepresents Limits

$28,500,000 VERDICT INCLUDING AWARD OF $18,500,000 IN PUNITIVE DAMAGES – INSURANCE FRAUD – INSURER FRAUDULENTLY MISREPRESENTED LIABILITY LIMITS IN PERSONAL INJURY ACTION.

County
Scott County, Kentucky

On November 3, 1998 the plaintiff was driving his vehicle when he was struck head-on by a truck driven by Eugene Clark, an employee of Dasher Express, who had fallen asleep while driving. The plaintiff was severely injured, suffering fractures to his femur, wrist and ribs and needing 60 stitches to his forehead. The defendant Cincinnati Insurance Company represented Dasher and its employee Clark in that personal injury action. The attorney for the insurance company represented to plaintiff’s counsel that the coverage on the trucking company vehicles was $1million. Plaintiff’s counsel originally had demanded $1.5 million. Two and one-half years later, ten days prior to trial, the defendants offered $25,000, then $150,000 and then on the day of trial, they raised their offer to $500,000. Minutes later, the defendants’ attorney advised that they would settle for the policy limits of $1 million and wanted the plaintiff’s attorney to sign a release releasing the excess carrier. Plaintiff’s attorney refused and after the matter was resolved, the plaintiff’s counsel investigated and determined that there was a $5 million excess liability policy that the defendants had never disclosed. Plaintiff brought this case against the insurance company and alleged bad faith and fraud in its failure to disclose the excess insurance coverage and representations during the settlement of the matter that no other insurance coverage existed.

The defendant denied any wrongdoing but ratified the actions of its attorney and stated that the attorney’s actions were proper.

The matter went to trial and the jury determined that the defendant acted fraudulently.