 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Werlinger v. Warner2/14/2005
JUDGES: Concurring: Anne Ellington William Baker
PUBLISHED OPINION - Motion to publish granted March 14, 2005
When a defendant whose liability insurer has acted in bad faith proceeds to make his own settlement with an injured plaintiff, the amount of that settlement may become the presumptive measure of damage in the bad faith lawsuit, but only if a trial court determines that the settlement is reasonable. In this case, a defendant insured with limits of $25,000 obtained a discharge in bankruptcy for his liability for a terrible automobile accident, and then confessed judgment for $5 million as part of a settlement that assigned his bad faith claim to the injured plaintiff. The court found the $5 million settlement to be unreasonable because the settling defendant's discharge in bankruptcy was a complete defense and left him with no exposure. We conclude the defendant's bankruptcy was an appropriate factor to consider and the court did not abuse its discretion in finding the settlement unreasonable.
Respondent Michael Warner was driving his wife's car to work on February 15, 2001. Warner made a sudden left turn across motorcyclist Dean Werlinger's path, causing Werlinger's death. Werlinger was survived by his wife Heike and their three children.
Warner did not see Werlinger before making the fatal turn, and his liability was beyond dispute. Warner had an insurance policy with Clarendon National Insurance Company with limits of $25,000. Within a few weeks of the accident, Heike Werlinger obtained counsel, who contacted Clarendon. Clarendon denied Warner's coverage on the basis that Warner's wife's car was not listed on the policy. Clarendon is the real party in interest in this appeal.
Warner had filed a Chapter 13 bankruptcy proceeding sometime before the accident. He converted it to a Chapter 7 on April 2, 2001. Werlinger obtained relief from the automatic bankruptcy stay in May 2001 for the 'limited purpose' of pursuing Warner's automobile liability insurance coverage and any claim Warner might have against Clarendon for wrongful denial of coverage. Two weeks later, Clarendon's claim representative sent a letter informing Warner that Clarendon would defend him under a reservation of rights.
Warner was granted a discharge in bankruptcy in July, 2001. Shortly thereafter, Werlinger filed a wrongful death action against Warner. Clarendon filed a declaratory judgment seeking to establish that Warner's policy did not cover him at the time of the accident. In October, Werlinger demanded payment from Clarendon for the policy limit of $25,000. The letter demanded a response within 60 days. Clarendon did not respond or tender within that time period.
Clarendon moved for summary judgment on the issue of coverage in the declaratory judgment action in March 2002. Werlinger successfully defended Warner's interest in this action. The trial court found that Warner was entitled to coverage as a matter of law. Clarendon did not appeal this ruling. Clarendon tendered the policy limits of $25,000 in June, 2002. Werlinger rejected the tender and proceeded with the wrongful death action against Warner.
Warner and Werlinger agreed to a settlement dated November 2002. In exchange for Warner's confession of judgment in the amount of $5 million, Werlinger agreed not to hold Warner personally liable for the judgment. The confession of judgment acknowledged that the bankruptcy discharge released Warner from any personal liability resulting from the traffic accident, and that the bankruptcy court had awarded to Werlinger all causes of action related to Clarendon's allegedly wrongful denial of coverage. Werlinger anticipated using the w
Page 1 2 3 4 5 Washington Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|