Case Results

Confidential Settlement

Confidential Settlement

Mr. Farley represented 3 of four business owners who were criminally charged with deliberately burning down their own business, a grocery store, for an insurance payment. They were prosecuted for arson and insurance fraud. During the prosecution, Mr. Farley discovered the insurance company for the business owners was actually working with the office of the district attorney to prosecute the business owners for a crime despite the lack of evidence of a crime.

On theeve of trial, the Office of the District Attorney dismissed all charges in exchange for apromise from the Clients not to sue to the Government for the damages the prosecution caused them to suffer for two straight years.

Following the dismissal of the criminal case, their insurance company filed its own law suit agains tthe business owners and sued to cancel or “rescind’ the insurance policy because of the their so-called “criminal or dishonest acts.” While the lawsuit was pending, The business owner’s insurance carrier refused to pay her benefits under their insurance policy.

Mr. Farley and the business owners sued the insurance company for insurance bad faith and for breach of insurance contract. After several years of litigation, and just 3-4 weeks before trial, the insurance carrier agreed to settle and paid their policy holders millions of dollars to settle their claims.