Hyundai Motor Company coverage litigation

Jim McDermott represented Hyundai Motor Company in an insurance coverage lawsuit alleging breach of contract and bad faith against Illinois National Insurance Company, an AIG company.

The lawsuit was based on Illinois National’s failure to properly manage the defense of an underlying wrongful death case and Illinois National’s failure to settle within policy limits. Illinois National had the opportunity to settle the underlying case for less than the $6 million policy limits that it provided to Hyundai. Illinois National failed to settle the underlying case, and judgment was ultimately entered against Hyundai for $10.7 million, plus interest. On behalf of Hyundai, a coverage litigation complaint was filed after Illinois National refused to agree to pay any amounts above its policy limits. Hyundai sought compensatory and punitive damages for Illinois National’s bad faith.

The coverage litigation settled with AIG being forced to satisfy the underlying judgment of more than $15 million.