Massachusetts Insurance Law Update- Plaintiff Awarded in Excess of $1 Million for Insurer's Failure to Settle Automobile Liability Claim Within $20,000 Policy Limits

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The newsletter focuses on an interesting appellate decision affirming an award for extracontractual damages. The case arises out of the insurer's actions in handling a claim for damages due to a motor vehicle accident. The court enforced what is commonly known as a "Damron" agreement, whereby the insured stipulated to a judgment with the injured plaintiff (with a covenant not to execute) to avoid personal liability. The judgment was then used as a measure of damages. The award was further remanded to the trial court for a possible doubling because of the insurer's conduct.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jon Halaby | Attorney Advertising

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