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Written by AMLO.

Insurance bad faith

King v. Liberty Mutual

London Federal Court, London , KY (2004)

Kay King's husband was killed in an automobile accident in 1984. She filed a lawsuit, which was settled by the insurance company, Liberty Mutual, who agreed to pay $15,000. The settlement was agreed to be "structured" with an initial payment of $5,000 and periodic payments to begin in 1996. The pending lawsuit was dismissed in 1989. King waited for the payments. In 1996 no payments arrived.

King called Liberty Mutual and asked about the payments. However, no one could give her any answers. She hired Mehr Fairbanks Trial Lawyers. Mehr Fairbanks Trial Lawyers filed suit and Liberty Mutual agreed to a settlement for $30,000 on the underlying structured settlement obligation. However, Liberty Mutual denied they were in bad faith. The federal court agreed. Austin Mehr appealed.

The Sixth Circuit Court of Appeals reversed the dismissal of the bad faith and sent it back to trial. (Link See Appellant Decision Won in the Sixth Circuit Court of Appeals). The case was then tried in London Federal Court in August 2004, twenty (20) years after her husband's death. During the second day of trial, the parties reached a mutual settlement.