Bad Faith Denial of Professional Disability Payments $3,690,000 Settlement

Commercial Litigation, Verdicts and Settlements

After three years of contested litigation, Bland Richter settled a bad faith denial of disability benefits claim for $3,690,000 against one of the country’s largest disability insurers. The plaintiff was a young South Carolina trial attorney who had suffered a heart attack and, as a result, could no longer practice law as a “trial” attorney. Although the policy was an owner/occupation policy, the insurer first denied benefits on the grounds that the insured was not a trial attorney, and later denied benefits by arguing that the insured was capable of employment in a capacity other than that of a trial attorney. The total benefits due under the life of the policy if paid through age 60 would only have been approximately $850,000.