Saturday, April 12, 2014

AIG ordered to pay injured lawyer $7M for insurer’s bad-faith conduct in lawyer's underlying accident case

"Blasting a major insurance company for what he called unfair settlement practices in an egregious case, a Massachusetts judge Tuesday ordered American International Group Inc. to pay at least $7 million to a lawyer hit by a bus making a left turn as a he crossed a street in Boston.
The award in the bad-faith case is in addition to $3.6 million paid in 2008 by AIG to Odin Anderson and his family for his injuries in the 1998 accident, the Boston Globe reports.
Lawyers representing AIG made up claimed facts in the personal injury litigation underlying the bad-faith suit and inappropriately coached the bus driver to change his story, said Associate Justice Brian A. Davis in his written opinion in the Middlesex Superior Court case. An argument that Anderson was partly responsible for the accident because he ran out onto the street between cars was based on “a wholly made-up fact," the judge wrote."  More.

Originally Posted Apr 11, 2014 1:10 PM CDT in ABA Law Journal
By Martha Neil

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