Jurors Award $10 Million in Insurance Suit

A former truck driver was awarded $10 million by a Superior Court jury Tuesday because his employer’s insurance company balked at paying claims after a 1978 fatal accident in which he was involved.

Jurors awarded Joseph Stanton $60,000 in compensatory damage for his worry over the insurer’s behavior and $10-million punitive damages in the “bad faith” insurance case from Continental Casualty Co.

The 10-2 verdict was announced after a three-week trial and only five hours of deliberation in the court of Los Angeles Superior Court Judge Jack Tenner.

“I can’t believe it,” said Stanton, who was fired during the litigation and now works as an umpire in the Anaheim Department of Recreation. “Ten million dollars is a lot of money.”

Stanton’s attorney, Thomas G. Stolpman, said he urged jurors to assess enough damages against Continental to force a change in its attitudes and halt such treatment of other claimants in the future. He said the verdict represented 1% of the company’s worth.

Stanton’s problems began Sept. 5, 1978, when the truck he was driving for Target Express separated from its trailer in a rainstorm on the 605 Freeway. Stolpman and lawyer Michael Luboviski, who also represented Stanton, said the trailer struck a vehicle driven by Luis Zoque, killing him.

Zoque’s widow and two small daughters filed claims against Firemen’s Fund and Allstate, which insured Stanton as a driver, and against Continental, as Target’s insurers. Luboviski said Firemen’s and Allstate acknowledged liability and agreed in 1981 to pay $200,000.

Stanton had separately sued Continental for “bad faith,” claiming that the company had caused him emotional distress by not paying the Zoques’ claim.

Liability Denied

The Zoque family agreed to limit their damages to $400,000 and tried to collect the remaining half from Continental, Stolpman said, but the company balked, claiming it had no liability for Stanton.

Four years after the accident, and after the Zoques had filed suit against the insurer, Stolpman said, Continental finally acknowledged liability and negotiated a settlement of $150,000 with the family. Stanton continued with his own litigation.

Stolpman argued successfully that Continental shared liability for Stanton under the California Insurance Code because he was a “permissive user” or invited to drive Target’s truck, which Continental insured.

Robert A. Muhlbach, attorney for Continental, could not be reached for comment. The company is expected to ask Judge Tenner to set aside the large verdict or grant a new trial.

If and when he receives the money, Stanton said, he hopes to buy a new home, invest some and buy his family things they have had to do without during the litigation.