 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Werlinger v. Clarendon National Insurance Co.8/22/2005
JUDGES Concurring: Anne Ellington Ann Schindler
PUBLISHED OPINION - Opinion ordered published October 4, 2005
Dean Werlinger died at the scene of a vehicle accident caused by Michael Warner. The Werlinger estate sued Warner for wrongful death. Warner was protected from personal liability due to a discharge in bankruptcy , but the bankruptcy court permitted the Werlingers to sue Warner for the $25,000 limits of his automobile insurance policy with Clarendon National Insurance Company. The Werlingers, as Warner's assignees, sued Clarendon for bad faith after Clarendon contested coverage and delayed tendering the policy limits. The Werlingers appeal the superior court's order granting summary judgment in favor of Clarendon. Because Warner suffered no harm as a result of Clarendon's actions, we affirm.
I.
The fatal accident occurred while Warner was driving his wife's uninsured vehicle. Warner's personal vehicle was insured by Clarendon, but was in the shop for repairs on the day of the accident. His insurance policy indicated that any auto, which he did not own, that he used as a temporary substitute while his vehicle was out of normal use for repair was a 'covered auto' under the policy.
Before the accident, Warner and his wife filed a Chapter 13 bankruptcy proceeding. After the accident, the Warners converted their bankruptcy to Chapter 7 in order to avoid personal liability. The Werlinger estate secured relief from the automatic bankruptcy stay for the limited purpose of pursuing Warner's automobile insurance, and sued the Warners for wrongful death in July 2001. The Warners were granted a discharge in bankruptcy.
Clarendon maintained that the policy definitions and exclusions created a question as to whether Warner's policy covered the Werlingers' losses and reserved its right to deny coverage. It defended Warner in the wrongful death action under a reservation of rights.
In August 2001, Clarendon filed a declaratory judgment action against the Warners. In October, the Werlingers sent Clarendon a letter demanding payment of Warner's policy limits within 60 days. Clarendon did not respond to the Werlingers' letter.
In March 2002, Clarendon filed a motion for summary judgment in the declaratory judgment action. The court granted the Werlingers' cross-motion for summary judgment, finding coverage for Warner. Clarendon tendered the policy limits of $25,000 soon thereafter. The Werlingers rejected the tender and proceeded with the litigation in the wrongful death action.
The Warners and the Werlingers entered a settlement agreement dated November 2002. In exchange for the Warners settling for $5 million, the Werlingers agreed not to hold the Warners personally liable. The parties agreed to a judicial determination of whether the settlement was reasonable.
The superior court concluded that the settlement was unreasonable because the Warners were not exposed to any personal liability due to their discharge in the Chapter 7 bankruptcy . On appeal, we concluded that the court did not abuse its discretion. We explained that the court properly considered the Warners' Chapter 7 bankruptcy status, and noted that Clarendon's alleged wrongful conduct in denying coverage did not cause the Warners' bankruptcy.
The Werlingers, as Warner's assignees, filed a bad faith lawsuit against Clarendon. The action alleged bad faith and violation of the Consumer Protection Act (CPA). On motions for summary judgment, the court ruled in favor of Clarendon because there was no injury to Mike Warner or his marital community. It denied the Werlingers' subsequent motion for reconsideration.
Page 1 2 Washington Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|