Opinion ID: 822843
Heading Depth: 3
Heading Rank: 3

Heading: Settlement offers

Text: Throughout the pre-lawsuit period and the underlying tort proceedings, GEICO made several attempts to settle the case for the $50,000 policy limit. GEICO first learned of the incident from Landt’s attorney on September 8, 2000. At that time, GEICO was informed that Landt had found Shapsnikoff and driven him home. After learning that Landt had been criminally charged, GEICO claims representative Michael Lina sought and was granted authority to resolve any claim Shapsnikoff’s estate may have had against Landt. He was authorized to offer $50,000 plus add-ons, the maximum amount per claimant per occurrence. GEICO contacted Phillip Paul Weidner’s office, the law firm representing the Shapsnikoffs, several times before the complaint was filed, in an attempt to settle the claim. After the underlying complaint was filed, on May 7, 2003, the court was advised that GEICO was willing to settle for the policy limit of $50,000. In January 2004, Daniel Quinn, Dushkin’s attorney, notified the Shapsnikoffs that he was authorized by GEICO to settle the claims against Dushkin and Landt for a single $50,000 per person limit plus add-ons. In March 2004, David Carter, Landt’s attorney, reiterated the offer to settle for $50,000 plus add-ons in return for a release of claims against Landt and Dushkin. On July 1, 2004, there was an unsuccessful mediation, in which the Shapsnikoffs demanded $100,000 (in the form of two $50,000 policy limits) plus add­ ons plus $500,000 from both Landt and Dushkin. After the failed mediation, Weidner sent identical but independent settlement demands to Dushkin and Landt (via GEICO) for the “true full policy limit proceeds” and 95% of the uninsured/underinsured benefits ($1 million). GEICO rejected any settlement demand that exceeded the $50,000 plus add-ons offer it had previously made. GEICO also filed a declaratory action (from which this appeal arises) to resolve its rights and duties under the policy. In October 2004, GEICO again offered to settle -5- 6746 for $50,000 plus add-ons, while reserving some of the claims for resolution in the declaratory action. This offer was not accepted. On December 13, 2004, Weidner sent independent and identical settlement demands to Landt and Dushkin expressing a willingness to settle for the full policy limits, $50,000 plus applicable add-ons to be determined by the declaratory judgment. GEICO requested clarification of the total amount required to settle all claims against Landt and Dushkin. GEICO also reiterated its standing offer of $50,000 plus add-ons. Weidner once again sent independent but identical letters to Dushkin and Landt, this time stating that GEICO’s response was a bad faith rejection of a settlement offer as to both Dushkin and Landt. In the letters he renewed the offer from December 13 or alternatively offered to accept $112,500 total for the release of all claims against Dushkin and Landt; he also requested an acknowledgment from GEICO that payment would “trigger any UIM [Uninsured motorist] coverage.” GEICO renewed its offer of $50,000 plus add-ons in exchange for the release of Landt and Dushkin. On December 24, 2004, Weidner sent letters to Sam Fortier and Marc June (Landt’s and Dushkin’s personal attorneys) with the proposal that Landt and Dushkin confess judgment of around $10 million each. On December 31, 2004, Weidner sent a similar letter to David Carter and Daniel Quinn. In response GEICO amended its complaint in the declaratory action to request a ruling that if Landt and Dushkin confessed judgment it would constitute a breach of the insurance contract and there would be no insurance coverage. In October 2006, Weidner, Carter, and Quinn filed a stipulation for entry of judgment. Landt and Dushkin each confessed judgment for $4,678,177.42.