Notice Required by Insurer
Kirk was injured in an automobile accident by Hamiti driving a car owned by Skenderi. The car was insured by Allstate and Hamiti was insured by Mercury. Allstate was settling with Kirk, and in the settlement agreement they removed Hamiti from the release in order that Kirk could pursue accessing the liability coverage provided to Hamiti from Mercury. Because Allstate had the wrong address for Hamiti, he was never advised of any offers or demands and was never sent a copy of the letter from Kirk’s lawyer that Kirk’s medical bills exceeded policy limits. Kirk later sued Hamiti for personal injuries. Kirk then obtained an assignment of rights from Hamiti to sue Allstate for bad faith.
The only issue on appeal was whether the trial court erred in finding that Kirk induced a relase of Hamiti, thereby absolving Allstate of any bad faith. Because there was no coercion or trickery involved in having Allstate remove Hamiti’s name from the release, Kirk’s assignment was valid and he was entitled to all Hamiti’s right, title, or interest in the bad-faith claim against Allstate. The court reversed and remanded in order for the lower court to determine if there was bad faith.
Kirk v. Allstate Ins. Co., 2012 WL 1861412, —N.E.2d —- (Ill.App. 5 Dist., 2012), No. 5-10-0573.
