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Sprague v. California Pacific Bankers & Insurance Ltd.

12/27/2001


In response to Question No. 3, the jury found that California Pacific acted in bad faith.


In response to Question No. 4, the jury found that Maydwell and Doris did enter into a contract for insurance coverage.


The jury's answer to Question No. 4 determined whether the jury would answer Question No. 5 (regarding the actual contract) or Question No. 6 (regarding the contract that would have been entered into had there been one). In light of their affirmative answer to Question No. 4, the jury answered subsections of Question No. 5 as follows: (a) Maydwell did not breach a condition of coverage which required a "certified flight instructor" to conduct a one-hour flight check out of prospective rental pilots prior to departure; (b) the coverage covered the hull of the airplane; (c) Doris was covered as an insured; (d) the coverage required California Pacific to defend Doris in the prior lawsuit; (e) the coverage required California Pacific to defend Maydwell in the prior lawsuit; (f) the alleged disappearance of William was excluded from coverage under the pilot exclusion clause; and (g) the alleged disappearance of William and Grace was not excluded under the limitation of liability provision.


On November 19, 1998, at the conclusion of Phase Two of the trial, on a special verdict form, the jury found in response to Questions Nos. 1 and 2 that the negligence of each of Chandler, Kam, James Nottage, Aviation Insurance, California Pacific, and Nottage Insurance was a legal cause of damage to Plaintiffs and the percentage of negligence of each was as follows:


Chandler 5%


Kam 25%


James Nottage 15%


Aviation Insurance 20%


California Pacific 20%


Nottage Insurance 15%


The jury further decided that special damages for negligence was $13,000; general damages or negligence was $15,300; special damages caused by Kam's fraud was $13,000; special damages caused by the fraud of Aviation Insurance was $13,000; Kam owed $250,000 punitive damages; Aviation Insurance owed $100,000 punitive damages; California Pacific's bad faith was a legal cause of damage to Maydwell and Doris; special damages caused by bad faith was $13,000; general damages caused by bad faith was $15,300; and California Pacific owed $250,000 punitive damages.


The Second Amended Judgment was entered on May 30, 2000. It awarded damages to Plaintiffs as follows:


Negligence Fraud Punitive Bad Faith
$1,415      
$7,075 $13,000 $250,000  
$4,245      
$4,245      
$5,660 $13,000 $100,000  
$5,660     $13,000 (Special) $15,300 (General) $250,000 (Punitive)



The Second Amended Judgment also ordered as follows:


4. Judgment is entered in favor of Insurance Resources, Inc., Sally Jo Nottage and Allen H. Tokunaga on all claims and causes of action.


5. The Stipulation and Order for Dismissal of Defendant Anne Nottage aka Anne Nottage Ashford having been filed in this action on April 16, 1997, no Judgment is entered against Defenda

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