Court upholds $8.1 million judgment against Nationwide
Columbus-based insurance giant Nationwide has failed in its attempt to avoid paying a judgment totaling more than $8 million over its handling of a claim stemming from a 2005 fatal accident in Georgia involving a Nationwide policyholder.
On Friday, the 11th U.S. District Court of Appeals in Atlanta upheld a lower-court ruling awarding the damages to the family of Stacey Camacho, who was killed when Nationwide policyholder Seung Park drove through a red light and his car struck Camacho’s car.
Park was drunk at the time of the accident, according to court records, and had a policy with Nationwide that provided coverage of up to $100,000.
The case centered on whether Nationwide acted in bad faith in settlement talks with Camacho’s family.
Initially, his family tried to settle its claims without a lawyer, and Nationwide offered $97,000, less than the policy limits, according to Richard Dolder, one of the attorneys for the family.
After the family hired a lawyer, the family asked for the full policy limits of $100,000, but Dolder said Nationwide insisted that the family agree to a release that would block the family from other potential sources of recovery while giving Nationwide the chance to get money back from the family if it located other sources.
Unable to reach a settlement, the family sued Nationwide in federal court in Georgia, accusing the insurer of acting in bad faith. The jury awarded $8.1 million in damages.
Nationwide said Monday that it disagrees with the ruling and is evaluating what to do next.