The principal at The Law Offices of Edward Smith talks about a $1.1 million case that involved bad faith on the part of the insurance company.
Boulder, Colo., Insurance companies have an obligation to provide accident victims with fair and timely treatment of their claims. Failure to adequately address a legitimate claim can end up costing more in the long run if a “bad faith” lawsuit is filed on a victim’s behalf. The automobile insurance company of a Colorado woman recently found out the hard way just how costly a bad faith claim can be when a case was settled in mediation for $1 million.
The case in question involved a 56-year-old woman who suffered a mild traumatic brain injury in an automobile accident. Edward Smith, the woman’s Boulder personal injury lawyer, initially pursued the at-fault driver’s policy limit of $100,000, which was eventually recovered. The woman, however, was also entitled to compensation from her own insurance policy due to underinsured motorist coverage.
“Unfortunately, my client’s insurance company did not act in good faith in processing the claim,” explained Smith, the principal at The Law Offices of Edward Smith. “The insurance company dragged their feet and delayed her claim.”
As the delays continued, Smith and his team collected evidence to help build a bad faith case against the woman’s own insurance company.
“We argued that her own insurance company owed her a duty of good faith in handling her claim and that they failed in this duty by failing to promptly review everything, and by consistently delaying things,” Smith said.
The evidence in the case spoke for itself.
“The case resolved at mediation for $1 million, bringing the total recovery for this client to $1.1 million,” Smith said.
People who are injured in accidents that are no fault of their own may be entitled to compensation under the law. The law also protects injured parties from undue delays and denials by the insurance companies that are meant to serve them.
To find out more about bad faith claims and how Longmont and Boulder injury attorneys can help, visit The Law Offices of Edward Smith online at www.edsmithlaw.com.