Advantageous Settlement for a Co-Defendant in an Insurance Fraud Case with a Bad Faith Counter-Claim

Best Evidence conducted four Roundtables and two Focus Groups for a co-defendant in an insurance fraud case with a bad faith counter-claim in the Middle District of Florida. This dispute arose out of a boating accident where the boat owner’s longtime live-in boyfriend (the co-defendant and counter-claimant) sustained a paralyzing injury as a result of diving headfirst from the boat into shallow water. Sometime later, the boyfriend sued his girlfriend alleging that he sustained his damages as a result of her negligent operation of the boat. The insurance company alleged that the couple engaged in a scheme of fraud to obtain insurance coverage. Furthermore, it contended that their insured failed to cooperate with them in their efforts to defend her against the action brought by her boyfriend. The injured counter-claimant alleged that the insurance company acted in bad faith by failing to settle the claims within a reasonable time. The insurance company sought damages and a declaration that it owed no further duties to the defendants. The counter-claimant sought to recover approximately $7 million based on a previous judgment entered by a Circuit Court Judge in favor of the injured boyfriend. This case was resolved favorably prior to trial.