Kricar, Inc., an Oregon Corporation v. General Accident, Fire and Life Assurance Corporation, Ltd., a Corporation

Kricar, Inc. (Kricar) owns a tavern and is insured by General Accident, Fire and Life Assurance Corporation, Ltd. (General) for $100,000. An accident occurred at Kricar’s tavern and General assumed Kricar’s defense in Oregon state court. General refused an offer by the injured party to settle within the policy limits, after which the injured party obtained a judgment against Kricar of approximately $300,000, considerably in excess of the policy limits.

Kricar instituted this suit against General for the difference between the policy limits and the judgment, plus consequential damages for loss of business profits and punitive damages. While Kricar’s action was pending, General settled with the injured party and satisfied the judgment against Kricar, granting Kricar a full release. Having satisfied this judgment in full, General then asked for, and was granted, summary judgment in the instant action. Notwithstanding the satisfaction of judgment, Kricar continued to assert the right to recover consequential and punitive damages. On appeal, Kricar also requests attorneys’ fees. Jurisdiction in the court below was based upon diversity of citizenship, 28 U.S.C. § 1332 . The applicable…