$2 Settlement Obtained From Insurer for Bad Faith Conduct
When an insurance company refused to settle a lawsuit against a corporate landlord, the jury rendered a huge verdict against the landlord. The verdict was more than the amount of the landlord’s insurance policy — by $2 million.
The landlord hired Mr. Quadrino, who filed a lawsuit alleging that the insurance company’s refusal to settle the case prior to trial caused the landlord to be liable for $2 million out of its own pocket. This type of “bad faith” suit can be filed in many states. Such suits are permitted when an insurance company is aware that its insured (here the landlord) is financially exposed beyond the limits of its insurance policy and refuses a reasonable settlement for less than the amount of the insurance policy.
After conducting depositions of the insurance company’s executives, the insurer settled the case by paying $2 million to the firm’s client, as damages for its bad faith conduct.
For more information as to the Insurance Claims and litigation practice of Quadrino Law Group, click here.