Chapter 8

Monday morning had finally come along with the nervousness Thad was now feeling. He was sitting at his table in the courtroom with Rex Firman telling him what questions he would be asking him and how he should respond. He was also guessing as to the questions that Connelly would be asking Rex. He thought in some way Connelly would be trying to infer that Rex was aware of what the negotiations were which he should deny. Thad told Rex just to give honest answers to what he knew to the questions he was asked. He should just answer yes or no if possible and not volunteer any other information.

Thad looked over at the defense table where Connelly was and saw him wearing a two thousand dollar suit sitting with three of his associates. There was a look of confidence on his face as he acknowledged Thad with a nod of his head.

The clerk announced the Judge’s appearance and everyone stood. After the Judge took her seat and everyone sat down she announced why they were there and had them proceed to voir dire. It didn’t take long to select the jury and two alternates.

The Judge asked Thad if he was ready to proceed.

He said he was and he gave his opening argument to the jury. Per his planned strategy he kept it simple saying he was going to show where the employees of this large insurance company were more concerned with saving five thousand dollars than they were with their fiduciary obligation of acting in the best interest of their insured. Because of that disregard, they caused a judgment of one point two million dollars to be rendered against Rex Firman their insured and he doesn’t have the money to pay that judgment. Two of the women jurors gasped when Thad mentioned the amount of money.

Scott Connelly delayed his opening argument for later.

Thad called Rex Firman as his first witness. He asked him questions about how the accident happened and how he reported the accident making sure it was obvious Rex was at fault because of his texting and missing the stop sign. He also through a series of questions had him negate that he was in any way involved in either denying fault for the accident or had any involvement in the ongoing negotiations in settlement of the claim.

Connelly in his cross-examination had Rex acknowledge he received a letter from the insurance company which said because of the amount he was being sued for he would be liable for any amount over his policy limit and that he should consider retaining his own attorney. Rex said he didn’t do that as he didn’t have the money to hire an attorney. The other questions Connelly asked attempted to show Rex was aware of the ongoing negotiations but Rex denied that.

“One last question,” said Connelly. “When you signed up with Attorney Conway to sue your insurance company did he say win or lose you wouldn’t need to pay any amount of that judgment?”

“Objection, attorney-client privilege,” said Thad.

“Sustained.”

Thad then called Darleen Claymore the insurance office’s Claim Superintendent. She was a lady in her mid-thirties who was somewhat overweight and gave the appearance that she didn’t like being there. After a series of questions indicating who she was and what she does, Thad started asking some serious questions. He had requested in the subpoena that she bring the claim file when she testified. He asked her if they had received his first demand letter along with the bills and medical report which she acknowledged they had. Thad asked her to read that letter which she somewhat reluctantly did.

“The letter said it enclosed the medical bills and the verification letter of the amount of time loss from work which is called the special damages. Can you tell us what that amount totaled?”

“They totaled some ninety-four thousand dollars approximately.”

“That letter also requests that you, being the insurance company, to send the necessary paperwork to sign for the case to be settled for the policy limits, is that correct?”

“Yes.”

He asked what action was taken on receiving that letter and she said the file didn’t reflect any action was taken.

Thad then had her repeat the same thing with the second letter he had sent. After she did this he again had her confirm that the letter offered to settle the case if they would pay the policy limits. She said there was action was taken and authorization of fifty thousand dollars was placed on the file.

“Who was the claim representative assigned to the file and what were the bodily limits of Rex Firman’s policy?”

“Kevin Boyle was the representative and the limits were fifty thousand dollars.”

“Does Kevin Boyle have the authority to authorize that amount of funds to settle a claim?”

“No, he doesn’t.”

“Who authorized that amount of money and what if any comments were given when the funds were authorized?”

Thad knew what the answers were going to be to all his questions and could see Darleen was becoming uncomfortable but she said, “I did. I said, Looks like a serious injury, and try and save something off the policy limits by testing the low range.”

“When Kevin Boyle negotiated the claim will you please read his negotiation report?”

“His negotiation report says, Negotiated with the attorney. He wanted the full fifty but I told him we deserve a discount and I offered him 45K. Attorney says if he doesn’t get the full 50k the offer is withdrawn and he will file suit. I told him I will only offer the 50k just before trial so he should take the 45k now.”

“So am I right in saying that your testimony is that demands were made twice by letter and once in verbal negotiations to settle the claim in full for the policy limits and the claim representative first ignored and then declined to do offer the fifty thousand since he was testing the low range per your instructions?”

Connelly objected saying Thad was testifying.

“No he’s not and the objection is overruled,” said the Judge. “Please answer the question.”

“The letters twice and once verbally Attorney Conway indicated he would settle the case for the policy limits.”

‘Were the policy limits offered, yes or no,” asked Thad.

“Not then.”

“What was the next significant event on this claim?”

“You filed suit.”

“One last question, when were the policy limits offered?”

“Approximately two weeks before trial.”

“And what was the result of that trial.”

“A verdict of one point two million dollars.”

“So if you had paid the policy limits there wouldn’t have been a trial or verdict rendered and we wouldn’t be here today?”

“Objection your honor, now he is testifying.”

“Sustained.”

That ended Thad’s questioning and he turned this witness over to Connelly. Scott took the approach that it is common practice to test the low range in settling claims and what Boyle did is just a normal practice in adjusting claims in the insurance industry. He tried to give the impression that there was nothing wrong in doing this as this is how business was done.

Thad then called Kevin Boyle as his next witness. He asked him the same questions he had asked the prior witness to include reading his negotiation report.

“Why did you only offer forty-five thousand to settle the claim?”

“Those were my instructions to test the low range and save a few dollars if I could in settling the claim.”

“Didn’t it become obvious that I wasn’t going to accept anything less than the policy limits and if so why didn’t you increase the offer to the policy limits which had been authorized?”

“As I said I was trying to save the company some money. There was also the issue of what we pay on claims which are always discussed at our monthly meetings. Darleen brings that up to our attention since she says that is part of her performance evaluation which affects her salary and her bonus.”

Connelly quickly objected. Thad countered saying it goes to the witness’s state of mind on why he acted as he did. The Judge overruled the objection.

The witness was turned over to Connelly. His questions again tried to make the point that this was just normal business practice in trying to save the company some money and testing the low range in negotiating claim settlements. Thad could see him playing to the jury as he did his questioning.

Thad called Bernie Gunn the defense attorney who defended Rex Firman in the original suit. Connelly objected to Attorney Gunn testifying saying attorney-client privilege applied. Thad pointed out the privilege was not with the attorney and the insurance company but was with Rex Firman and Bernie Gunn. Thad made the point that the insurance company only pays Gunn’s bill for services and that Rex Firman was waiving the attorney-client privilege. The Judge overruled the objection.

After introducing Gunn to the jury and having him testify how he became involved, Thad asked him if he ever sent a report to the insurance company on this lawsuit. He said he did send a lengthy report after he initially reviewed the file. Thad asked him to read the last paragraph of his report.

“The liability is clear in that your client is solely at fault for this accident. I strongly suggest you settle this claim as quickly as you can. If paying the limits will do so I urge you to do this.”

Gunn said to his knowledge the policy limits were not offered until only about one to two weeks before trial.

Thad didn’t have any further questions or witnesses and he rested his case.