City of Upland Completes Recovery of $10.48 Million in Bad Faith Lawsuit Following Colonies Litigation

UPLAND, Calif., Dec. 16, 2014 /PRNewswire/ -- The City of Upland reached an agreement with Independent Cities Risk Management Authority (ICRMA) ending the insurance bad faith lawsuit brought by the City against its insurance carriers relating to the Colonies litigation with the County of San Bernardino.

Shernoff Bidart Echeverria Bentley LLP, on behalf of the City of Upland, was able to recover a total of $10.48 million for Upland through prosecution of an insurance bad faith claim.

In that lawsuit, City of Upland v. Independent Cities Risk Management Authority, et al. (San Bernardino Superior Court, Case No. CIVRS1305011), Upland alleged that its insurers unreasonably failed and refused to defend the City in litigation arising out of the underlying Colonies litigation. The City of Upland was covered by a memorandum of coverage issued by ICRMA and an excess liability insurance policy issued by the Insurance Company of the State of Pennsylvania (ISOP).

The City turned over the lawsuit to its insurance companies for defense and indemnity; however, both were denied by its insurance companies. As a result, the City was required to spend $6.1 million defending itself and ultimately prevailed on all counts. Thereafter, the City hired Shernoff Bidart Echeverria Bentley LLP to seek reimbursement of the sums expended in the underlying case along with claims for consequential economic damages. As a result, the final settlement resulted in a total recovery of almost $10.5 million for compensation of the attorney's fees expended as well as other damages claimed.

"The City of Upland has endured numerous adversities, including the underlying claim from the County of San Bernardino, which was ultimately defeated," said Michael J. Bidart, Managing Partner of Shernoff Bidart Echeverria Bentley LLP. "At a time when the City needed its insurance companies to protect it, it was completely left to fend for itself. We are deeply gratified to have been part of restoring to the City that which it richly deserves."

"We are happy to have this matter settled in a way that benefits the residents of Upland," said Upland Mayor Ray Musser. "The financial challenges which precipitated this lawsuit are a thing of the past, and we're grateful to Shernoff Bidart Echeverria Bentley LLP for helping the City resolve this problem."

About Shernoff Bidart Echeverria Bentley LLP
Shernoff Bidart Echeverria Bentley LLP leads the nation in protecting policyholders from insurance company abuse. The firm has been protecting the rights of insurance consumers, both individuals and businesses, for over 35 years after having set the legal precedent requiring insurance companies to act in good faith.

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SOURCE Shernoff Bidart Echeverria Bentley LLP

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