Unfair Settlement practices re: Lead Paint Injuries ($185,000)

Insurance

Unfair settlement Practices Injuries alleged:

Deprivation of reasonable settlement and resulting irreparable harm because of poverty

Name of case: Withheld

Court/case: Suffolk Superior Court, No. 95-04682C Amount of settlement:

$185,000

Attorney for plaintiff: Chris A. Milne and Robert K. Rainer, Rainer & Rainer, Boston

Other useful Information:

The plaintiffs filed this complaint and motion for preliminary injunction while an underlying action for childhood lead poisoning was pending in the Boston Housing Court. Despite comments of the Housing Court judge that the case had "a minimum value of $100,000,' the insurer continued to offer $30,000 in settlement.

The plaintiffs alleged that due to the deprivation of a reasonable settlement, the plaintiffs were and would continue to suffer irreparable harm. The plaintiffs were without a refrigerator; the minor plaintiff was without eye glasses necessary for school (welfare would only pay for one pair a year); and the plaintiffs' housing had many code violations which as a matter of law 'materially endangered the health and safety' of the family.

The plaintiffs requested that the court order that $30,000 be paid by the insurer into an "Emergency Trust Fund" with an independent third party serving as trustee. The purpose of the trust would be to provide for the emergency needs of the minor plaintiff pending resolution of the case in chief, thus maintaining the status quo.

A hearing on the plaintiffs' injunction was obtained within seven days of filing the complaint. The plaintiffs agreed to the settlement of $185,000 with the conditions that: (1) the insurer be prepared to seek court approval the next day, at the time scheduled for the preliminary injunction hearing and (2) the settlement funds be received within two business days thereafter. The settlement was effectuated, and within a week, new eyeglasses and a refrigerator were purchased. The remainder of the settlement is held in trust, with an independent trustee to provide for the needs of the minor plaintiff.

Published with permission of Lawyers Weekly