Tracy Morgan Accident Results in Bad Faith Insurance Lawsuit

Newark, NJ The car accident involving Saturday Night Live star Tracy Morgan has now resulted in an insurance claim being filed by Walmart against its insurers. Walmart alleges bad faith insurance on the part of some of its insurers who have refused to pay their portion of a settlement with Morgan.

On June 7, 2014, Morgan was in a limo being driven from a casino in Delaware when the vehicle he was in was struck by a Walmart truck. Comedian James McNair was killed in the accident and Morgan was in a coma after the accident and suffered brain trauma as well as broken ribs and a broken nose. Ultimately, six vehicles and 21 people were involved in the accident.On August 11, 2015, the National Transportation Safety Board (NTSB) announced that its investigation found that the driver of the Walmart truck had been awake for more than 28 hours at the time of the crash, having driven 800 miles overnight from Georgia to Delaware. The NTSB noted that due to fatigue, the truck’s driver failed to brake for slowing traffic in time and was speeding through an active work zone, although the agency also noted that passengers in the limo were not wearing seatbelts.

Morgan then filed a lawsuit against Walmart, alleging the retailer was negligent in the accident. The lawsuit was settled in 2015 for an undisclosed amount.
According to (10/14/15), in Walmart’s filing against Liberty Insurance Underwriters and Ohio Casualty Insurance, the companies have not paid their portions of the settlement owed under their insurance policies. But Liberty and Ohio Casualty allege Walmart’s settlement was unreasonable and was reached without an attempt to negotiate, before Walmart’s liability had been determined.Arkansas Business (10/26/15) reports that Walmart said it hired an economic expert to review Morgan’s career and give recommendations based on future income, but that the insurance companies demanded more and more information as part of a bad faith attempt to avoid paying.Walmart has reportedly already paid out the settlement to Morgan but says it is owed money from insurance carriers who have not paid their portion. Walmart’s lawsuit against the insurers claims breach of contract and bad faith.Insurance policyholders who believe their company has acted in bad faith may be able to file a lawsuit against their insurance company for breach of contract and/or bad faith insurance.

Contact Saboorian & Associates, California personal injury law firm, or call us at 310-278-1010 (toll free at 866-347-1851) to schedule a free consultation.

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