Hana v. Illinois State Medical Inter-Insurance Exchange Mutual Insurance Company

Illinois Appellate Court
Civil Court
Settlements
Citation
Case Number: 
2018 IL App (1st) 162166
Decision Date: 
Friday, March 16, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div,
Holding: 
Reversed and remanded.
Justice: 
ROCHFORD

Plaintiffs filed suit against medical malpractice insurer, seeking to recover for its alleged bad-faith failure to settle underlying lawsuit, which resulted in jury verdict of $6.17 million against Defendants. Insurer paid its policy limits, and then Defendants assigned to Plaintiffs whatever rights the Defendants might have as to bad faith claim for insurer's failure to settle underlying litigation within policy limits. Jury verdict for Plaintiffs and against insurer, of $1.35 million in compensatory damages and $13 million in punitive damages, and $1.5 million in costs, attorney fees, interest, and penalties.  Trial before 6-person jury, pursuant to amended version of 735 ILCS 5/2-1105(b), later found facially unconstitutional by Illinois Supreme Court. Remanded for new trial due to denial of insurer's constitutional right to a 12-person jury.(REYES and HALL, concurring).