$12 Million Bad Faith Insurance Action

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Munley Law obtained a jury of $12 million for our client, who was badly injured at work when a forklift struck her.

The forklift was retrofitted with a faulty alarm system and had backed up without warning, striking her. The accident resulted in the amputation of her left leg.

The company that sold her employer the forklift was notified, as was their company. The insurance company claimed a lack of coverage and refused to cover the associated costs of the accident but gave no notice to the .

As a result of the accident, Munley Law sued the company that sold her employer the forklift and the forklift seller’s for bad faith. The case went to trial, revealing that the employer had purchased the forklift at resale and was informed by the seller that its backup alarm was missing. The seller agreed to put an alarm on the forklift, but it was faulty and had to be replaced several times.

Our personal injury lawyers proved that when the forklift struck the , the alarm was either disabled or did not work—thus, she had any warning that it was nearing. In addition, the Munley Law legal team was able to show that the insurer failed to settle the case for an amount within policy limits, defend its insured, and notify the insured that it would not be covering the costs.

The jury found the negligent and awarded the plaintiff $1.8 million and delay in the amount of $594,458.65, for a net verdict of $2,393,458.65. The jury also found the insurer had breached its fiduciary duty and acted in bad faith. The insurer was held responsible for the verdict cost.

The insurer had an opportunity to settle the case and carry out its duty to the insured by assuming financial responsibility for the injury and other losses. However, because the insurance company refused to do so, it ultimately paid a greater price.

Attorneys Responsible:

Marion Munley

Marion Munley,
Senior Partner

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