In Re Josefina Lopez

I. Factual and Procedural Background

A. The Accident and Personal Injury Suit On September 8, 2015, Mr. Bejar, a California Highway Patrol Officer, was conducting a traffic stop of a speeding motorist on the freeway when Lopez struck his motorcycle from behind. As a result of the collision, Mr. Bejar suffered catastrophic injuries, including but not limited to fractured vertebrae, herniations of his intervertebral discs, a fractured orbital bone, brain damage, a torn shoulder, torn tendons in his knee, and nerve damage to his arm and wrist. Mr. Bejar had multiple surgeries and was never able to fully recover or return to his job as a CHP officer. On September 8, 2017, Mr. Bejar and his wife, Mrs. Bejar, sued Lopez in Los Angeles Superior Court (“LASC”) in a case entitled Bejar et. al. v. Josefina Lopez, Case No. BC675339 (the “Personal Injury Suit”). At the time of the collision, Lopez was insured by Victoria and Victoria funded her defense of the Personal Injury Suit. Prior to filing the Personal Injury Suit, the Bejars, by and through their counsel, offered to settle their claim against Lopez in exchange for her liability policy limits of $15,000. Victoria refused to…