1.3 Million Dollars Insurance Bad Faith & Violation of California Commercial Code
Mr. Farley represented a small business woman whose jewelry business was destroyed by fire in Oakland, California. le, the owner of the jewelry business, was not only denied the benefits of her insurance contract, she also fell prey to wrongful banking practices by Fremont Bank which wrongly deposited insurance checks into unauthorized accounts.
Mr. Farley and le sued her insurance company for breach of contract and breach of the covenant of good faith and fair dealing, referred to as “bad faith,” for the mistreatment of its own policy holder.
Mr. Farley and le also sued Fremont Bank for recovery of $400,000 dollars which the Bank wrongly deposited into an account which was not an authorised account for le.
After several years of litigation, le’s insurance carrier paid approximately 1 million dollars under her policy, which amounted to full benefits plus attorney fees. Mr. Farley and le also recovered the full amount, or $400,000 dollars, from Fremont Bank, in damages caused by unauthorised deposits.