PHILADELPHIA – A policyholder has initiated legal action in order to finalize the release agreement he consented to during negotiation proceedings, after a serious automobile accident three years ago.
Jose Santiago of Philadelphia filed suit in the Philadelphia County Court of Common Pleas on May 30 versus the Philadelphia Housing Authority and Housing Authority Risk Retention Group, Inc. of Cheshire, Conn.
Santiago was insured by Housing Authority Risk Retention Group when on April 3, 2014, he was involved in a rear-end collision on University Avenue in Philadelphia and says he suffered serious injuries in the process. Santiago averred the accident was the fault of the other driver, Jacqueline Newborn, covered by Mercury Insurance Company.
Mercury tendered its insurance policy limits of $15,000 on Dec. 11, 2015 and Housing Authority Risk Retention Group, Inc. gave Santiago permission to settle the third-party claim with Mercury on Dec. 30, 2015, per court records.
“On Dec. 15, 2016, defendants, Philadelphia Housing Authority and Housing Authority Risk Retention Group, Inc., offered to settle the underinsured motorist claim with plaintiff for $28,500, including a reimbursement reduction of the worker’s compensation lien to $6,000,” the suit says.
However, since filing the petition to seek the finalization of the release agreement, the plaintiff claims the defendants have refused to provide a release for the underinsured motorist settlement, a check for the underinsured motorist settlement or proceed with the hearing to approve the reduction of the worker’s compensation lien reimbursement to $6,000.
For counts of breach of contract, bad faith and specific performance, the plaintiff is seeking compensatory, expectation, reliance, restitution and consequential damages in an amount in excess of $50,000, plus attorney’s fees, interest, costs and other such relief as the Court deems just and appropriate, in addition to enforcement of the agreement in this matter.
The plaintiff is represented by Steven J. Schatz of Schatz & Steinberg, in Philadelphia.
Philadelphia County Court of Common Pleas case 170504138
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com