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GMT Client Prevails on Appeal of Fraud Claim Against AIG
GMT Partners Jeff Tilden and Frank Cordell, along with co-counsel
Will Smart of Seattle's Keller Rohrback, represent William Dussault
in a fraud case brought against the nation's largest property and
casualty insurer, AIG. Mr. Dussault is the guardian ad litem for Sheilana
Walker-Van Buren, an 11-year-old girl who was severely injured in
a 2000 automobile accident. Sheilana brought a personal injury action
against several defendants, including the City of Everett, Washington.
AIG, the City of Everett's liability insurer, agreed to pay Sheilana
$7 million in settlement of her claims. AIG failed to pay the settlement
amount when due, and ultimately paid only after Sheilana filed a Motion
to Enforce Settlement.
Sheilana filed a separate action against AIG in Snohomish County Superior
Court. Her action alleges, among other things, that AIG fraudulently
represented that the insurer's internal procedures prevented the payment
of settlement funds sooner than seven weeks after the settlement was
reached. Sheilana sued AIG for fraud, outrage, and bad faith, alleging
that the insurer's statements concerning its ability to disburse settlement
funds were false and intended to induce her to agree to a seven-week
delay in payment, all to allow AIG to enjoy the float on a $7 million
payment. The Snohomish County Superior Court dismissed her case, ruling
that Washington law precludes such actions by an injured claimant
against a liable party's insurer.
On November 1, 2004, Division One of the Washington State Court of
Appeals reversed the Superior Court's decision in part. The Court
of Appeals held that AIG's status as a liability insurer does not
insulate it from liability for intentional torts committed against
third-party claimants. The appellate court remanded the case for further
proceedings. The decison will be published, and may be found here. |
