Case Study: Netzley V. Allstate Ins, Inc.

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FACTS Donna and Vic are in an accident in Cleveland, Ohio. Vic sustains severe injuries. Donna admits liability but since Vic's medical expenses exceeds the limited coverage that her insurance carrier provides. Both parties agree to a settlement offer but her insurance carrier, Gekko refuses. Their case goes to trial, the verdict exceeds more then the insurance company would pay for sending Donna into bankruptcy. ISSUE The issue is whether under Ohio state law will Donna be able to have a cause of action against Gekko. RULES In Netzley v. Nationwide Mut. Ins. Co., 34 Ohio App. 2d 65 (Ohio Ct. App., Montgomery County 1971), In addition, we hold to the view that an offer of settlement of the claim at, or near, the policy limits should be conveyed to the insured -- this for the purpose of giving the insured the opportunity to engage in the discussion of a settlement, and to make appropriate offers of contribution toward settlement. In Calich v. Allstate Ins.…show more content…
The Court reasoned:A living insured with no assets suffers injury when an excess judgment is obtained against him because such a judgment will potentially impair his credit, place a cloud on the title to his exempt estate, impair his ability to successfully apply for loans, diminish his reputation and future prospects and the like." Conclusion Therefore, Donna will prevail against Gekko for acting in bad faith and failing to negotiate with

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