$1 Million Insurance Bad Faith Settlement Obtained For Local Small Business
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By
Fitzsimmons Law Firm PLLC
Fitzsimmons Law Firm recently obtained a $1 Million insurance bad faith
settlement against an insurance company when the insurance company wrongfully
denied coverage to a local small business. In the underlying case, a local
real estate sales company requested insurance coverage and a defense when
one of its agents was subpoenaed for a deposition in a separate claim
involving failure to disclose foundation defects in a house previous listed
and sold by the real estate company. Following the agent's deposition,
the real estate company was joined into the case as a third party defendant.
The insured real estate company then filed a direct claim against its
insurance company alleging that it had failed to provide coverage and
a defense. The insurance company alleged that the insured real estate
company failed to provide proper notice of the claim to the insurer thereby
disqualifying the real estate company from coverage. The real estate broker
provided an affidavit that the plaintiff's attorney in the original
claim never intended to file suit against the real estate company and,
therefore, there was no reason to provide notice to the insurance company.
Multiple depositions and discovery occurred resulting in the insurance
company paying a $1 Million insurance bad faith settlement to the real
estate company and fully indemnifying the real estate company in the underlying
suit including reimbursement of all attorney fees and costs.
