Bad Faith Insurance Case Against American Family Insurance
Congratulations to our partner John Coletti on his bad faith trial in the US District Court for the State of Oregon (Federal Court) against American Family Insurance! The case settled during the 3rd day of trial. The amount is confidential but what John did for his young client was wonderful.
His client was in a MVA when she was 17 and just obtained her license. She, Ivey (car #1) was waved on by other drivers, making a left turn and nosing out to see when she was hit by a car (car #2) which was sent into a pedestrian who lost his leg. The injured pedestrian was represented by Chuck Robinowitz. Chuck send 20 day demands to both insurance companies.
Car #2’s insurance company was Country Companies and called immediately, asked for documentation and said they would pay the limits if they get the records, etc. Ivey’s insurance company, American Family, did not call during the 20 day demand (even though its file was marked as more than a limits case). Chuck filed suit and then American Family offered its limits but too late. American Family did not try to negotiate above the limits and Ivey had to go through a trial where she had a judgment against her for nearly $1.1 million.
John then filed suit against American Family for bad faith. American Family did not pay the judgment against Ivey for a LONG time and until much discovery was done in the bad faith case. American Family did not appear to think much of John’s case until it saw how the trial was going.
Ivey had $100k policy that she bought with her own money and was on her way to her 2nd job when the MVA occurred.
John represented this young girl for several years hoping to help her and he was able to do that thanks to the jury system.