Bad Faith Insurance Lawsuit Results in $8 Million Award

Resident Mutual Insurance Co. acted in bad faith when it failed to appropriately pay out the claim of a policyholder whose home was severely damaged when it was hit by a truck, according to a recent jury decision.

In 2008, an errant truck that lost control while on a road in the Hollywood Hills crashed into a home owned by then-86-year-old Robert Christopher and Patricia Freiling, setting it on fire. While Christopher had taken out a policy on the home with Resident Mutual of up to $231,000, and estimates to restore the property totaled $434,942, the insurance company only paid Christopher $146,534.

According to the unfair bad faith insurance denial lawsuit that was eventually filed by Christopher, Resident Mutual charged the costs of the independent investigation into Christopher’s policy against the total lump sum owed to him. Furthermore, he claimed that part of his claim was evaluated by someone who was married to the adjustor on the case,Insurance News reported.

Following a trial, the Los Angeles Superior Court ruled that Resident Mutual had acted in bad faith and did not properly pay Christopher within his policy’s limits. The ruling stated that Resident Mutual must pay Christopher $500,000 for damages to the house, and $7.5 million in punitive damages.

If your insurance company has acted in bad faith and not paid you for a claim in accordance with your policy’s terms, it may be worth pursuing legal action. Call Sokolove Law today to learn more about pursuing a bad faith insurance lawsuit.

Tags: