$22 Million Settlement Reached In Record Bad-Faith Case

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In September 2014, Ross Feller Casey founding partner Matt Casey reached a $22 million record-setting settlement in a bad-faith case involving a major insurance company and a man who was denied payment of $250,000 in coverage.

The landmark legal outcome is the largest insurance bad-faith settlement in Pennsylvania history, and the largest involving a motor vehicle accident in the nation, according to VerdictSearch, a leading publisher of verdicts and settlements.

As a result of a catastrophic Philadelphia car collision in 2009, Patrick Hennessy, then 24, suffered severe injuries and eventually underwent an above-the-knee amputation of his right leg.

Despite multiple pre-litigation opportunities Casey extended to the insurance company to tender its entire $250,000 policy, the company refused to do so and forced the case to trial. However, years after refusing to pay its full policy limits, the company offered Casey the full policy limits, which Casey, having litigated the case for about three years, declined.

In May 2013, with Casey as the trial attorney, a Philadelphia jury reached a $19.1 million verdict in the case. After winning the verdict, Casey set out to prove that the insurance company acted in bad faith by refusing to pay its insured's full policy limits to Hennessy at the outset of the litigation.

Since the jury awarded $19.1 million, interest on the verdict and judgment has increased the total to approximately $22 million, and Casey recovered that full amount from the insurance company in the settlement.

The settlement is 88 times the amount of the originally available insurance policy limits that Hennessy sought.

Casey's legal victory drew widespread media coverage, including in The Philadelphia Inquirer (read story here), The Scranton Times-Tribune (read story here), on the front page of The Legal Intelligencer (read story here), and on KYW News Radio (listen to the report here).

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