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Aggressive Trial Preparation Yields Favorable Settlement

January 1, 2004

Michael B. Lawler, James S. Williams and Tina D. Varjian successfully defended a neuropsychologist against claims of intentional infliction of emotional distress and conspiracy with the insurer.

Plaintiff, a television director, was injured in in automobile accident in France and claimed to be physically and mentally disabled. His disability insurance carrier, Reassure America, had plaintiff examined by several doctors including a neuro-psychologist. The neuropsychologist, after administering an extensive battery of standardized tests, concluded that the director was not disabled from a neuropsychological perspective. The disability carrier subsequently stopped paying disability payments to the director.

Plaintiff sued the insurer for breach of contract and bad faith and sued the neuropsychologist for intentional infliction of emotional distress and for conspiracy with the insurer. The director demanded $2.4 million to settle with the neuropsychologist.

The defense denied that there were any factual or legal bases for the director's claims against the neuropsychologist. Motions in limine were filed to exclude live testimony of plaintiff's expert witnesses, most of whom has not been timely produced for deposition, and to preclude the use of deposition testimony of doctors in France, whose depositions had not been properly noticed. Similarly, the defense determined that the evidence of plaintiff's loss of earnings/capacity claim was speculative and moved to exclude that evidence. It was also established through extensive discovery from the insurer's employees that no conspiracy could have existed.

At the final status conference a week before trial, the court ordered the parties to a mandatory settlement conference. Plaintiff's demand to the neuropsychologist remained at $2.4 million. At the MSC, the director dropped his demand to $275,000. The defense stood firm with its offer of zero dollars. Ultimately, plaintiff agreed to dismiss the neuropsychologist with prejudice, with each side to bear its own costs.