Auto Accident Cases
Situation:
How Did Our Client Receive Compensation In Excess of All Insurance Policy Limits?
Our client, a 53 yr old woman, was involved in a auto accident in June, 2003. The auto accident happened when the defendant left a stop sign without checking for oncoming traffic. As a result, our client crashed into the defendant’s car. During the crash, our client struck her head. She was diagnosed with a concussion, and later, post concussion syndrome. She was sensitive to light, forgetful, and suffered constant headaches. She was treated for approximately one year by a neurologist.
At the time of the auto accident, our client was on her way to her doctor’s office, following left foot surgery, which had occurred 2 months earlier. A month after the auto accident, she developed pain in her right foot, for an osteochondral defect. Several years earlier, she had had surgery for this condition. Fifteen months after the accident, she had another surgery.
The medical records of both her neurologist and orthopedic surgeon indicated a causative relationship between the car crash and her injuries, including the foot surgery. Our client’s medical bills amounted to $45,000.
The defendant was insured with the minimum coverage allowed under Illinois law, $20,000. Shortly after a law suit was filed, the defendant settled the case against him for $20,000. Thereafter, an underinsured motorist claim was filed under our client’s automobile insurance policy, which carried policy limits of $100,000. After a statutory set off of the defendant’s $20,000 policy, a claim was made for $80,000. Our client’s insurance carrier balked at paying this amount, maintaining that because of her pre-existing foot condition (ie. the osteochondral defect), and “limited” head injury, they were willing to pay only $45,000 on her underinsured motorist coverage
Successful Resolution: $117,000: $17,000 over all policy limits
Our client received an additional $17,000 beyond all insurance policies, or $117,000 in all.
The claim proceeded to arbitration, mandatory under Illinois law. Lipkin & Higgins argued that our client’s insurance company was exercising bad faith in resolving her underinsured motorist claim. As evidence of our client’s injuries, and relationship to the car crash of June, 2003, we presented medical reports and deposition testimony of the neurologist and orthopedic surgeon. The insurance company presented no medical evidence in support of its decision to pay only $45,000 of the $80,000 available under its policy.At arbitration, our client was awarded the full $80,000. The insurance company made no payment for more than 30 days.
Thereafter, Lipkin & Higgins filed a law suit against our client’s insurer. We claimed that the company’s conduct in offering only part of its underinsured motorist claim policy, with no medical testimony to support its decision, and then failing to make payment of the arbitration award for more than 30 days, constituted a “vexatious and unreasonable delay” in settling her underinsured motorist claim, in violation of the Illinois Insurance Code. Almost immediately after suit was filed, the insurance company’s lawyers contacted Lipkin & Higgins to settle the “bad faith” law suit. Our client received an additional $17,000 beyond all insurance policies, or $117,000 in all.
