A Philadelphia Personal Injury Lawyer Talks About Philadelphia Personal Injury and Bad Faith

Bad faith claims against insurance companies have increased. To increase the likelihood of success in such a claim, you need to send a "bad faith letter". Here is a sample.

Dear Insurer:

This will serve to formally advise you in your capacity as the insurer for the defendant that my client, Michael Jones will accept the sum of $15,000.00 in full settlement of this claim against your insured upon satisfactory proof that your insured’s liability insurance coverage for this accident does not exceed that figure.

This offer on my client’s part will remain open until April 30, 2007. Thereafter, no offers of settlement within your insured’s insurance coverage, assuming that coverage is as stated as above, will be considered. Furthermore, my client will thereafter look to your insured and the carrier for satisfaction of any verdict or any finding in excess of your insured’s stated insurance coverage.

As you know, the insurer assumes a fiduciary position towards the insured and becomes obligated to act in good faith and with due care in representing the interest of the insured when it asserts in the policy the right to handle all claims against the insured, including the right to make a binding settlement. If the insurer is derelict in this duty, as where it unreasonably refuses an offer of settlement, it may be liable, regardless of the limits of the policy, for the entire amount of the judgment secured against the insured.

You have a positive duty to notify your insured of the potential personal and economic liability in the event that you do not settle this claim within the time limits allotted herein. You must also take into consideration the mandates of Pennsylvania Rule of Civil Procedure 238 which requires that ten percent (10%) delay damages be added to the an award when the award is 125% of any offer in writing. To date, no offered has been made in writing to settle this claim. You are risking these damages on your company’s behalf and on behalf of your insured in the event that this matter does not settle within the time frame set forth in this letter.

Liability of your insured for this accident is readily apparent. Your insured struck my client while he was lawfully crossing 63rd Street at its intersection with Haverford Avenue. Your insured attempted to turn right onto City Avenue in disregard both of my client and a red traffic signal.

The likelihood of a verdict for less than $15,000.00 is extremely slight. Michael Jones suffered multiple cervical disc herniations and other serious injuries as the direct result of defendant's negligence. I am sure that anyone realistically evaluating this claim for settlement purposes would set a figure between $60,000.00 to $100,000.00.

It appears that your company has the choice of three alternatives in the handling of this claim.

1. Accept our demand of $15,000.00 within the time limit set forth in this letter by certifying the policy limit and tendering a Release in the stated amount;

2. Advise formally that the coverage is in excess of $15,000.00. This will result in a withdrawal of our present demand and renegotiation of this claim.

3. Refuse our demand either formally or by failing to act in accordance with the stated time limits of this letter. This will result in a withdrawal of the offer and an absolute refusal on our part to settle the claim for $15,000.00 or less at any stage of the proceedings. Moreover, any recovery in excess of the applicable policy limits will be enforced against your insured and the insurance company, including delay damages, in accordance with the applicable Pennsylvania law.

I suggest that you advise your insured of the contents of this letter and respond in writing to me within the necessary time limits.

For more information about Evan Aidman, a Philadelphia, PA Injury Lawyer and his work with clients with serious injuries click here: Philadelphia, PA Injury Lawyer

Evan Aidman is the founder and principal of the Law Offices of Evan K. Aidman. Mr. Aidman received a Bachelor's Degree in psychology from the University of Florida where he was elected to the Phi Beta Kappa Honor Society after compiling a near perfect scholastic record. He graduated from the University of Pennsylvania Law School, an Ivy League Institution, in 1983.

Click Here for Attorney Aidman's website: Philadelphia Personal Injury Attorneys

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