Settlement Announced in Suit Against Insurer
A settlement was announced Friday in a longstanding “bad faith” lawsuit against Allstate Insurance Co. by a South-Central Los Angeles family whose $40.5-million jury award was nullified by a judge eight years ago as “excessive.”
The settlement was reached as a new trial began in Superior Court to determine the damages to be paid by Allstate to Alice and Henry Fellows, their son and two nieces. The Fellows filed suit when they were hurt in a 1976 accident involving an uninsured motorist and the company refused to pay a $31,000 claim.
Alice Fellows, 48, and her husband, now disabled, will receive an undisclosed amount. She said the sum was enough for her to quit her assembly-line job.
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