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Insurance Company Settles Bad-Faith Suit Stemming from Multi-Million Dollar Verdict

Bad Faith, Blogs

On September 29, 2014, Allstate Insurance Company reportedly settled a bad-faith action for $22 million. The lawsuit arose from a $19.1 million verdict awarded by a Philadelphia jury to plaintiff Patrick Hennessy for injuries he sustained in an auto accident. Following the verdict, Allstate’s insured, Ryan Caruso, who was found partially responsible for the accident that resulted in the amputation of Hennessy’s leg, assigned his rights against Allstate to the plaintiff. Hennessy then sued Allstate for its refusal to pay the judgment entered against its insured, alleging, among other things, that Allstate failed to inform Caruso that the plaintiff would have accepted the policy limits of $250,000 in full settlement of the underlying matter. The $22 million settlement purportedly encompasses the $19.1 million verdict as well as damages for subsequent delay plus interest.