Gray·Duffy Negotiates Favorable Settlement for Crane Company in Construction Site Accident and Recovers Attorney’s Fees and Costs

March 2011

Overview

Barry D. Brown of Gray · Duffy represented Ad Lite Crane Service in a personal injury case involving alleged injuries sustained on a construction site. A settlement of plaintiff’s claims was reached in the amount of $50,000. As part of the litigation, Gray · Duffy filed a cross- complaint against plaintiff’s employer for breach of contract based upon the indemnity language of Ad Lite’s Job Ticket with the plaintiff’s employer. The result of the negotiations was that the plaintiff’s employer paid the entire amount of the settlement to the plaintiff and agreed to reimburse Ad Lite Crane Services’ carrier, Scottsdale Insurance Company, up to $40,000 of its defense fees and costs.

Discussion

Jose Magdaleno vs. Ad Lite Crane Service

Gray·Duffy represented Ad Lite Crane Service in a construction site personal injury case involving claims of permanent injuries, medical evaluation and treatment, vocational rehabilitation and a substantial past and future wage loss. The claim against Ad Lite Crane Service was that its crane operator prematurely and without direction moved a roof truss, causing the plaintiff to fall and sustain injury to his lower back and right leg.

Ad Lite Crane Service’s job ticket transferred all liability except for Ad Lite Crane Services’ sole negligence to the plaintiff’s employer, Alten Construction. The claim was tendered to Alten Construction and its carrier which denied the tender. A cross-complaint was filed against Alten Construction for breach of contract.

At the initial mediation, the plaintiff claimed damages in excess of $3 million, which was then reduced to $400,000. After a series of discussions among counsel, Alten Construction’s carrier settled the case for $50,000 and paid the plaintiff. In addition, Alten Construction’s carrier agreed to reimburse Ad Lite Crane Service’s carrier $40,000 for its defense fees and costs. Thus, Ad Lite Crane Service’s carrier did not pay any amount to the plaintiff and recovered approximately 90 percent to 95 percent its defense fees and costs.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.