Austin Mehr Law Offices win bad faith verdict against Kentucky National Ins. Co

Eriksen v. Kentucky National Insurance Company

William Eriksen is a local Chiropractor in Elizabethtown, Kentucky. He owned a historic building in downtown Elizabethtown. One night a vehicle crashed into his building. The building did not appear to be damaged too badly. Unknown to Dr. Eriksen, however, the vehicle had caused serious structural damage. Months later, while the building was being renovated, the structural damage was discovered, and bids to repair would have exceeded the value of the building. The city ordered him to raise the building, which cost $15,000.

AMLO client wins $20,000 verdict, far more than was ever offered by his insurance company.

For years Eriksen had insured the building for $35,000. He paid a premium which was based upon an actual cash value of $35,000. However, Kentucky National Insurance Company had different ideas about the value of his building and only offered him $1,500. After recovering $22,000 from the insurance company from the driver, he employed Austin Mehr Law Offices to sue Kentucky National Insurance Company for bad faith. The jury agreed. The decision rendered on October 29, 2004, after a four (4) day trial, found that Kentucky National Insurance Company had indeed committed Bad Faith as follows:

1. That Kentucky National did not have a reasonable basis for refusal to pay Dr. Eriksen’s claim, and
2. That by refusing to pay William Eriksen’s claim Kentucky National either knew it had no reasonable basis for refusing to pay the claim or acted with an evil motive or acted with reckless indifference to William Eriksen’s rights.

The jury awarded $20,000 in damages, far more than was ever offered by Kentucky National.