Lakeside Couple Wins $17 Million From Jury

In what one attorney believes may be the biggest jury award ever in San Diego County, the Hartford Insurance Co. has been ordered to pay more than $17.2 million in damages to a Lakeside couple said to be the victims of bad faith and unfair dealings.

A Superior Court jury made the award to Carlos Abellon, 36, and his wife, Jeanne, 39, on Thursday after one day of deliberations and a three-week trial before Judge Raul Rosado.

In an interview Friday, the couple’s attorney, James A. McIntyre, said the award was a welcome conclusion to the years of legal maneuverings between his clients and Hartford, one of the nation’s larger insurance companies.

“It has been a long haul and my clients didn’t even want to go through a trial in the first place,” McIntyre said. “We are very pleased with the outcome. I think the jurors were convinced that the Hartford Co. had treated the Abellons improperly and unfairly over a period of six years.”

McIntyre added that he expects the insurance company to seek a new trial or attempt to have the appeal reduced or overturned. Attorneys for Hartford could not be reached for comment.

The episode at the heart of the lawsuit was a Feb. 19, 1980, traffic accident on Interstate 5 near Carlsbad. Carlos Abellon, then a 29-year-old serviceman stationed at Camp Pendleton, was northbound on the freeway on a rainy night when his car struck a tractor-trailer rig that had jack-knifed and was blocking two lanes.

Loss of Sight

Abellon suffered a skull fracture, brain damage and loss of sight in his left eye and remains mentally impaired.

The Abellons’ legal saga is a vivid illustration of the lengthy and complicated process that is often necessary in litigating personal injury claims.

The truck that Abellon hit was owned by Ron’s Delivery Service and driven by Donald H. Robbins, who later pleaded guilty to a misdemeanor charge of driving under the influence of alcohol. Ron’s Delivery Service was insured by Hartford under a policy providing $250,000 per person and $500,000 per accident.

In the aftermath of the accident, the couple filed a lawsuit seeking compensation from Ron’s Delivery. During negotiations, Hartford executives offered to pay a total of $250,000, the single policy limit, to settle both claims.

Finally, the couple and Ron’s entered into an agreement awarding a judgment of $750,000 for Carlos Abellon and $250,000 for his wife, McIntyre said. But the insurance company refused to pay any more than the $250,000 on Carlos Abellon’s claim and would not pay anything for his wife. Hartford attorneys maintained that the policy did not entitle Jeanne Abellon to any compensation for the loss of her husband’s support and comfort, McIntyre said.

The 4th District Court of Appeal, however, disagreed, and ruled that Hartford was required to pay Jeanne Abellon the $250,000. The company did so, but resisted paying the $81,000 in interest that accumulated as the legal proceedings dragged on. Hartford finally made that payment after yet another court hearing, McIntyre said.

Meanwhile, Ron’s Delivery Service assigned its own breach of contract claims against Hartford to the Abellons, McIntyre said. That action was taken in exchange for a pledge by the couple that they would not try to collect a judgment against the delivery company.

Breach of Contract

The Abellons then sued Hartford for breach of contract and bad faith, based on the insurance company’s refusal to try to settle the matter expediently on behalf of Ron’s. They also sought compensation for emotional distress.

The jury award included $15 million in punitive damages. In addition, Carlos and Jeanne Abellon were paid $650,000 and $800,000, respectively, for emotional distress; Carlos Abellon received $500,000 for the unpaid amount from the initial settlement, plus $267,821 in interest on that amount.

Finally, the settlement included $15,000 that Ron’s had agreed to pay the couple earlier.