Flick

Background After sustaining injuries in an automobile accident caused by Francisco Reyes, Jr., Flick had her attorney send Reyes’s insurer, the United Services Automobile Association (USAA), a letter explaining the severity of her injuries and an authorization for the release of her medical records. Flick’s attorney followed up with a settlement demand two months later, requesting that USAA pay Flick the entirety of Reyes’s $100,000 policy limit in exchange for a release of liability. Attached to the demand was a single medical record from Flick’s neurologist. USAA investigated Flick’s claim and determined it did not have sufficient information to accept or reject her demand. Flick then filed a personal injury lawsuit against Reyes. The jury found in her favor and awarded nearly $1.7 million in damages. Reyes conveyed his rights against USAA to Flick in exchange for an agreement not to execute the judgment against him. Flick then sued USAA for breach of contract and breach of the implied covenant of good faith and fair dealing. Trial At trial, a USAA claims adjustor admitted that Reyes was fully at fault for the accident with Flick. Reyes could therefore be exposed to liability in…