Insurance Fraud / Bad Faith

$10.1 million
Case Details: This judgment for 12 year-old Rasheed Hilson was entered in July, 2009 after 15 days of trial before Hon. Leslie Nichols, Santa Clara County Superior Court after the defendant's insurance company, Amica Mutual Insurance, refused to pay its $50,000 policy to put to rest this youngster's severe injury claims, including brain damage, hemiplegia, and multiple fractures. On November 14, 2007, Rasheed left the Morrill Middle School on Cropley Avenue, San Jose, and raced down the driveway, intent on catching a bus. A typical 12 year-old, he thoughtlessly ran into the street and into the path of a car traveling at 35 mph. The San Jose Police Department concluded the speed limit was 35 mph because the crash occurred at 4:30 pm and the school had closed at 2:30 pm. The police department failed to inquire why six witnesses to the event were 11 and 12 year-olds. Had they asked the police would have learned that an interschool basketball game was underway in the school's gym and according to the testimony of the school principal, the Morrill Middle School was in operation at 4:30 pm. Rasheed suffered profoundly severe injuries, which are permanent and which will require lifelong care. Tried by Richard Alexander and Jeff Rickard. As a result of this case both were named Santa Clara County Trial Lawyers of the Year 2008.
In-depth details. Hilson v. Tran, Santa Clara County Superior Court.

$5,200,000
Case Details: Insurance bad faith and injury recovery collected for a wonderful San Jose couple who suffered a severe head injury and facial and orthopedic fractures, including the loss of an eye, in a head-on collision at the Cats intersection on Route 17, Los Gatos, California. When a southbound and under-insured Jeep [$100,000/$300,000 GEICO policy], slowed to make an illegal u-turn, which the investigating Highway Patrol officer described as "suicidal," a Housing Authority police officer driving 15 mph hour over the speed limit punched the Jeep forward and across three lanes of northbound traffic into the plaintiffs car. Focus groups concluded that 90% of the cause of the crash was the Jeep. When we described the Jeep as being "cocked" and the police car "pulling the trigger," the Housing Authority was found 90% at fault.

$4.5 million
Case Details: On April 27th, 2006, George Liu, a 24-year-old San Jose State senior, was operating a Kawasaki ZX6 racing motorcycle in the fast lane on Calvert Drive in San Jose. Downstream a Honda CRX in the slow lane made an illegal u-turn across the fast lane and forced a van ahead of George's motorcycle to make an emergency stop. The van stopped in time and never hit the CRX. When George jammed on his brakes, his motorcycle reared upward onto its front wheel and pitched him over the handlebars into the van as he stopped. As a result George is an L-1 paraplegic. A demand that the insurance company for the Honda pay its policy limits was denied, leading to the collection of $4.5 million. In-depth details can be found on this site, including the courtroom computer reconstruction showing how the crash unfolded from the motorcyclist's view.
See also George Liu's personal video report. George Liu v. John Doe, Santa Clara County Superior Court.

$2 million
Case Details: This insurance bad faith recovery for serious personal injuries suffered by Zhai and Pengfu Chin arose from a crash on Interstate 80 near the Carquinez Bridge when an aggressive driver of a Jeep lost control coming onto the highway, spun out and caused a head-on collision. The Nissan Altima performed well in this high speed collision that easily could have killed the driver and passenger. The insurance carrier for the Jeep refused to pay its $100,000 policy to settle these claims. This settlement occurred on the eve of trial.

$2.0 million
Case Details: A retired teacher and his wife suffered severe personal injuries in a head-on crash with an SUV. The insurance company refused to pay its policy limits of $50,000/$100,000 in settlement. One month before trial, State Farm paid $2,000,000 to settle the insurance bad faith claim and end its exposure for punitive damages.

$670,000
Case Details: 36 year old Greek citizen, visiting the San Francisco Bay Area, suffered injuries while in a rental car when he and his family were rear-ended by a Volvo tractor. Greek travel insurance proved to be classic pure indemnity policies once popular in the ship insurance business and useless in the U.S. The Greek medical insurance policy only reimburses the insured after they have paid their medical bills. This amounts to being uninsured.

$2.65 million
Case Details: 70 year old elementary school volunteer came to us immediately after she suffered a below-knee amputation after being struck in a crosswalk by a car. We made sure she made none of the common mistakes made by personal injury claimants. The insurance company refused to settle for its policy limits of $100,000 before suit was filed. This bad faith recovery was obtained before trial after the defendant driver complained to his insurance company that it should have paid the policy limits and in not doing so was exposing him to a judgment in excess of his coverage, all of which could have been avoided. The insurance company came to its senses and paid the $100,000 policy, plus $2.55 million above and beyond the policy to settle all claims.

Recovery Amount: Confidential
Case Details: Nationwide breached their contract for failure to pay delayed compensation, improperly made charge backs to extended earnings payments, breached their implied-in-fact contract for good cause termination, breached an implied-in-fact contract for exclusivity and alleging that their two leading commercial lines insurance brokers interfered with contract.
Lawrence B. Kohler and Joseph Orlando v. Nationwide Mutual Insurance Company, Employers Insurance of Wausau, et al, Civil Action No. C 93-1584 SC

$6.17 million
Case Details: Class action case involving 1,809 California Allstate Insurance agents who had not been reimbursed for the cost of maintaining Allstate offices under R830, R1500 or R3000 employment contracts. Although these agents legally were employees of Allstate, Allstate required them to personally pay for the costs of operating company offices under its Neighborhood Office Agency program. Under the California Labor Code, employees cannot be forced to pay for an employer's business expenses as a condition of employment.