Hagadorn
American Home Assurance Co. v. Hagadorn
Opinion
Opinion
Hollenhorst, J.
Facts
Defendant James L. Hagadorn was a construction worker who sustained a job injury on August 1, 1986. His employer, Bragg Crane Service, paid workers’ compensation benefits through its insurers, American Home Assurance Co. and American International Adjustment Co. (collectively American). The workers’ compensation benefits totaled approximately $155,000.
Defendant Hagadorn sued a third party, Herrera Construction Company, for negligently causing his accident. Herrera and its insurer, Ohio Casualty Group of Insurance Companies (Ohio Casualty Group), were joined in that action. American filed a lien in the third party action to attempt to recover the workers’ compensation benefits it had paid.
A mandatory settlement conference was held in the third party action on September 22, 1988. Attorneys for American appeared and unsuccessfully negotiated with Ohio Casualty Group for settlement of the lien claim. Attorneys for Mr. Hagadorn also appeared and negotiated with Ohio Casualty Group. A representative of Ohio Casualty Group, Mr. Terry, testified that he offered to settle Mr. Hagadom’s claim for $650,000, on the condition that Mr. Hagadorn dismiss his third party action…