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petitioners approximately $102,000 of the interim award. Before
final judgment had been entered, petitioners filed a petition to
vacate the interim award and requested a rehearing on the matter.
In April 1991, petitioners and Allstate entered into a
general release and settlement agreement, which provided that, as
settlement for the action filed by petitioners, Allstate would
pay petitioners an additional $130,000. In return, petitioners
agreed to release Allstate and its related entities from all
claims and liabilities “including claims for bad faith breach of
contract or statutory violations under law.” Petitioners also
agreed to pay Allstate any moneys received under any other claim
of loss for this damage, up to $128,084.
At the settlement conference preceding the agreement, the
parties discussed the revised estimate of repair costs, but did
not discuss punitive damages other than petitioners’ agreement to
forgo punitive damages if the settlement amount was close to the
actual cost of repairs. The repair estimate at that time was
$236,000, though the actual cost was greater.
While petitioners were pursuing their claim against
Allstate, they also filed a complaint against Lane for the damage
he caused by removing the berm. In order to protect its
subrogation rights, Allstate filed a lien against any possible
award in the Lane litigation. The lien amount was approximately
$85,000, though Allstate later accepted $75,000 in satisfaction
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