The Region : Tour Line in Bus Crash Sues Insurer

Starline Sightseeing Tours sued its insurance carrier, claiming that the company has been making “piecemeal settlement” to victims of the May 30 crash of a Starline tour bus in Walker Canyon that killed 21 elderly Santa Monica residents. More than $1 million in settlements have already been made by Industrial Indemnity, according to the suit, which alleges that the insurer is attempting to quickly settle claims up to Starline’s $5-million policy limit and then leave the company to defend all remaining claims alone. In the lawsuit, ordered sealed by Superior Court Judge Warren Deering, Starline claims that it faces up to $10 million in damage claims, not counting large punitive damage claims that may be assessed against both the company and the tour bus driver, Ernst Klimeck. Deering denied the bus company’s request for a temporary restraining order barring any further piecemeal settlements, but scheduled a Jan. 22 hearing on the matter. The suit also seeks a court order requiring the insurer to pay punitive damage claims above Starline’s $5-million policy limit and hire an independent lawyer to counsel the bus company.