As originally found here by the Daily Report Online, a federal judge ordered Nationwide Mutual Insurance Co. to pay more than $8.1M to the family of an auto accident victim. A jury determined that the insurer acted in bad faith by denying a claim for the death of the deceased woman, Stacey Camacho, who lost her life to a drunk driver.
More than $5.7 million of the total sum was awarded in a 2009 trial against the negligent party, and as of the the most recent trial, the court has still yet to determine an awarding for attorney fees because Nationwide did not settle in 2011 for $4.5 million.
This lawsuit, which took place in Georgia, was affected by the state’s offer judgment statute which asserts that the party that declines a settlement offer, and then losses in trial by at least 25 percent more than the rejected offer, can be forced to pay for the other party’s attorney fees. The representatives of the plaintiffs noted that this large amount was caused by Nationwide’s bad faith practices and would have only been $100,000 had they agreed to pay on the policy limit rather than insisting upon additional conditions.
Though every lawsuit has its own set of circumstances, and not every settlement ends in the millions, it’s still important to recognize that regardless of the size of the insurance company, if they are acting in bad faith, then there are lawyers who are willing to help you fight for the justice you deserve. Million & Million, PLLC are those lawyers. Our experience with bad faith practices and lawsuits means we can help you recover the monies that are rightfully yours.
In the underlying case, the 25-year-old mother died as a result of Seung Park slamming his commercial van in Camacho’s Toyota Tercel in 2005. The mother, who was driving with her 2-year-old son at the time, suffered fatal injuries and passed away the following day.
Park was sentenced to seven years in prison and five on parole after pleading guilty to vehicular homicide.
After the accident, Camacho’s husband and mother/executor retained a lawyer, who sent Nationwide a time-limited, 10-day demand for Park’s $100,000 policy limit, as well as an offer to shield Park from any personal liability from other claims aside from other insurance coverage available to the Camacho family. Nationwide rejected the offer and responded that they would only pay if the family supplied a general release which would force them to repay the insurer if other claims were made.
In 2011, after several years of litigation and an initial award of $5.85 million, the family retained new counsel (as their lawyers in the state case were potential witnesses) and pursued the bad faith lawsuit.
The pretrial defense filing reasoned that Nationwide had challenged the lawsuit on various grounds, including Park’s negligence as the proximate cause of the damages against him and that the family’s initial lawyer was attempting to instigate a bad faith claim by demanding specific type of releases in order to push the insurer beyond the 10-day demand letter deadline.
The defense team also claimed that the bad faith claim was a tort and that the case was truly about a breach of contract.
The plaintiff’s legal representatives said there was little discussion aside from a $500,000 offer from Nationwide shortly prior to the trial that was declined.
During the trial, the jury had to decide whether Nationwide acted in bad faith or negligently, with damages to be determined at a later date. Because of the intricacies of insurance laws, the plaintiff’s lawyers noted that they were challenged by the need to educate the jury about the processes and procedures of the insurance system and how they play out in a lawsuit.
After litigation that lasted a little over one week, the jury found for the plaintiffs.
The presiding judge noted that Nationwide’s claims adjuster had admitted to the handling of the initial demand letter as “not in line with industry custom and practice” and that “there was certain evidence from which the jury could infer that the plaintiffs were being jacked around in their settlement negotiations giving Nationwide’s conduct the flavor of bad faith.”
In total, the family was awarded $5,730,000, which was the amount of the state court judgment, plus what was at the time of entry, $2,405,873 in interest.
If you are experiencing similar difficulties with your insurance company, then find some relief in knowing that Millin & Millin, PLLC is here to help. We have a track record of going up against the big bad wolf insurance companies and successfully getting fair compensation for our clients. Schedule an appointment today in our McAllen office to find out how we can help you with your claim.
Can we trust our auto insurance companies to protect the public when a motor vehicle accident occurs? These big bad wolf companies disguise themselves as public protectors, but when it comes down to protecting they look the other way. Auto insurance companies lie, defraud and steal from victims injured in motor vehicle accidents and leave them to fend for themselves.
If you have been injured in a motor vehicle accident the last thing you want to worry about is the auto insurance company. As an injured victim you are in pain and focusing all your energy and time on recovering. You entrust that they will give you the best possible settlement and do what they can to help. The reality is greed is a powerful thing and even if the auto accident wasn’t your fault, auto insurance companies don’t care. They will fight and argue against you or your appointed attorney to give you the minimum amount possible from the policy. They figure if the individual really is in pain, chances are they will seek medical treatment with or without their help. Personal Injury attorneys do what is within their power to ensure that their client receives just payment and compensation for their pain and suffering, damage to vehicle, and loss of wages if any. However, there are situations when insurance companies fail to disclose certain information about insurance policies and act in bad faith towards the victim and their attorney.
Sioux Falls, South Dakota- Jeff Cole, a former attorney for a car crash victim, accused Charter Oak Fire Insurance of intentionally failing to disclose a $1 million policy that included uninsured and under-insured motorists. The victim, Laura Dziadek, was a passenger in a vehicle that had been loaned to her friend by Billion Motors (automotive dealership). Dziadek was clearly not at fault for the accident. She suffered severe injuries including a number of fractures to her back, ribs and other parts of her body. Dziadek was left to deal with her medical bills. Charter Oak Fire Insurance is owned by Travelers, the billion dollar insurance company with the little red umbrella as their logo. Travelers is the third largest writer of U.S. personal insurance (including auto) through independent agents such as Charter Oak Fire Insurance. Laura Dziadek believes that Travelers purposely tried to hide the policy. Dziadek’s attorneys argued that Travelers engaged in a practice of bad faith. “Bad faith” by definition is the intentional fraudulent act of not meeting legal expectations or contractual responsibilities. Bad faith in regards to contracts can include deluding clients, entering into an agreement without the intent or means to fulfill it, or defy fundamental standards of integrity when dealing with others. If an insurance company is proven to have acted in bad faith that can lead to further investigations, other lawsuits and millions of dollars in damages.
Travelers received a letter from Jeff Cole in February of 2009 requesting a “true and correct copy” of the Billion Motors insurance policy with Charter Oak Fire Insurance as well as the information page. That same month, a Travelers claims specialist sent a letter to Cole saying “no coverage for your client exists under this policy.” However, the copy sent to Cole by Travelers was incomplete. The copy completely excluded the section that made Dziadek eligible for under-insured motor vehicle coverage that is secured for up to $1 million. The jury found that Travelers acted with dishonesty and bad faith, awarding Dziadek with $750,000 in compensatory damages, plus more than $200,000 in interest.
Following the initial verdict, Judge Roberto Lange requested that the jury consider penalizing damages against the company. Judge Lange explained that the penalizing damages were meant to prevent the company from committing future wrongful acts. After many arguments and rebuttals back and forth from both Dziadek and Travelers’ attorney the jury returned with a verdict for an additional $2.75 million in punitive damages. Dziadek’s attorney expressed to the public that the verdict accomplished its goal of publicizing fraudulent insurance company practices.
The following are some of the many reasons why auto insurance companies feel that victims are not eligible for coverage and ultimately neglect to give proper compensation:
The battle against auto insurance companies for fair compensation is far from over. Motor vehicle accidents transpire daily. Financial institutions need to follow the rules and most importantly be honest and upfront about their policies. These rules and policies are there to protect those injured and any act of bad faith or excuse will not be tolerated.
If you have been treated unfairly by your insurance company, Millin and Millin is here help. We have a track record of going up against the big bad wolf insurance companies and successfully getting fair compensation for our clients. Schedule an appointment today in our McAllen office to find out how we can help you with your claim.
A startling discovery reveals that life insurance companies have secretly avoided paying out billions of dollars worth of policies to unknowing families.
April 20, 2016
With age comes a little wisdom and you begin to realize you’re not going to live forever. Family becomes your priority and the all important life insurance policy premium finds its way into your monthly budget.
But what if that money never makes it to your family and you’re last gift ends up in the pockets of the same companies that promised you a peace of mind?
As originally reported here, dozens of life insurance companies have come under major federal scrutiny after a national task force investigation revealed that many were failing to pay unaware beneficiaries their just due. Though the representing industry trade association known as the American Council of Life Insurers claims that “most life insurers are going well beyond what the law requires to identify policy owners who have died and left unclaimed benefits”, 25 of the most prominent life insurance agencies have agreed to pay more than $7.5 billion in back-death benefits in a series of hushed settlements.
A number of startling revelations have emerged from this nation-wide probe. Perhaps one of the most unsettling facts is that this practice wasn’t merely used by a few rogue companies, but is rather a systematic industry-wide norm. Even more so, investigators discovered that there hundreds of thousands of policies that have gone unpaid even so far back as the 1960’s. Although the sheer number of unpaid policies speaks volumes on the reality of the situation, these incidents could perhaps be viewed simply as mistakes in a system to large to fully grasp.
However, the haunting truth remains that numerous companies failed to pay benefits despite having access to federal records indicating death of the policyholders or even explicit confirmation from the relatives of the deceased. In fact, if a beneficiary failed to come forward, some companies still continued to collect premiums by drawing money from the policies’ cash reserves – draining the policy of any worth. This method of operation could turn an investment of $20,000 over 50 years into more than a million dollars. Taking into account all the hundreds of thousands of “small” policies that went unpaid, there are estimates that the total amount of outstanding dues ranges into the billions.
Though the damage has been done, states are beginning to initiate sweeping requirements that ensure life insurance companies will be more forthcoming with providing families their due process in securing benefits. In Florida, for instance, laws will requires agencies to vigilantly monitor death records from the Social Security Administration to improve the prospect of a family obtaining the funds. Unclaimed money will be handed over to the state’s Unclaimed Property Program.
If you are interested in further investigating the possibility that you are the beneficiary of an unpaid policy that is being unlawfully withheld from you, contact your local state’s Unclaimed Property Program administration department. Also visit https://unclaimed.org/.
If you have any additional questions or simply need assistance with insurance claims and issues contact Millin & Millin at (956) 631-5600. Our compassion, dedication, and personal attention will get you the RESULTS you deserve.
When it comes to important educational matters, the attorneys of Millin & Millin believe that involvement in the local education system is vital to the future of our children and, by extension, our community. Earlier this year, the Facilities Forecast Advisory Committee (FFAC) visited all of McAllen Independent School District’s facilities to identify any needs and evaluate the state of our children’s educational environment.
The FFAC is a community-based endeavor that consists of nearly 130 members and is made up of teachers, district staff, students and parents, along with members of the business community. Gina K. Millin and Mike Blum, co-chairs for the FFAC, presented their findings to the school board based on the information gathered through a study conducted over the previous nine months. Findings revealed that nearly half of all McAllen ISD campuses and auxiliary buildings are over forty years old and in desperate need of some major renovations.
“McAllen ISD has done a great job of building new, beautiful schools, but there are a lot of old facilities in our district that need some attention,” Millin told the board. She added, “Despite the facility, whether it’s old or new, MISD teachers are making the best use of what they have.” (Source: The Monitor) Buildings, like homes, go through much use and abuse, warranting minor repairs being made on a regular basis. However, after many years, a more exhautive approach becomes necessary.
At Millin & Millin, we believe our values rest not only on what we accomplish in the legal profession, but also on what we can do to shape our local community. Our goal is to ensure that the learning environment we provide for our children reflects the ideals and potential of the public.
The attorneys of Millin & Millin believe legal representation involves more than advocating for clients’ rights. It involves engagement with the local community and taking on important issues. As a member of McAllen’s Planning and Zoning Commission, John Millin recently gave his take on a preliminary proposal to re-examine zoning for agricultural open-space land throughout the city.
In April 2014, the Commission reviewed the proposal that might fuel development by designating agricultural open-space land for future residential and commercial purposes. Proposed zoning changes may cause complaints regarding favoritism and trigger other problems, according to Millin.
“I hope that the city and the commissioners are going to appreciate what I foresee as a very delicate situation, where you’re going to be essentially picking and choosing who you’re going to overrule when they object and who you’re not going to overrule,” Millin said. (Source: The Monitor)
Always working to better serve the community and their clients, the attorneys of Millin & Millin are steadfast in their dedicated pursuit of justice. This new zoning proposal is a concern for Mr. Millin, who expects this to create issues for certain landowners seeking rezoning exemptions, possibly having a major impact on McAllen’s future development.
Texan entrepreneurs and business owners can rejoice and take comfort in the fact that they are at a distinct advantage, according to a recent study conducted by CNBC. The state’s strong economy combined with its technology, infrastructure and innovation has helped it reach the number two spot on “America’s Top States for Business” list.
This is terrific news for anyone wanting to pursue a journey in entrepreneurism. The business litigation attorneys of Millin & Millin want your business, large or small, to succeed and will do the best they can to ensure its protection.
Each state was measured by CNBC on 10 key business and economic development factors in order to determine an appropriate and definitive ranking. These factors included the low cost of doing business and the strength of a state’s economy, as well as its infrastructure and transportation conditions.
All 50 states were ranked based on feedback from business groups, companies, economic development experts and the states themselves. The study concluded that as far as business-friendly climates go, Texas is definitely a contender for having one of the best in the nation.
As this nationwide study shows, business continues to thrive in the Lone Star State. It’s important for potential and current business owners to consult with a business litigation attorney before exploring any entrepreneurial venture.
Businesses of all shapes and sizes must comply with regulations to protect themselves against a variety of potential legal liabilities. The business litigation attorneys of Millin & Millin understand the legal issues faced by many Texas businesses and can help you create a strategy to protect your company.
