This was an uninsured/underinsured motorist (UM/UIM) case against State Farm involving a motor vehicle accident claim where the insurer initially ignored repeated demands for arbitration and made a low initial offer under $30,000. To force action, a lawsuit was filed for breach of contract and insurance bad faith, prompting the insurer to retain coverage counsel. A stay of the bad faith action was negotiated while proceeding with arbitration on the underlying injury claim.
The pending bad faith exposure created significant leverage, ultimately resulting in a settlement for the full policy limits of $250,000 following the plaintiff’s deposition. This matter highlights the importance of holding insurance companies accountable and utilizing bad faith litigation strategies to obtain full policy value.