$364k Verdict in Minnesota Breach of Contract Case| Jurimatic by Exlitem

Marciniak, Erik v. Liberty Mutual Group, Inc.

On February 8, 2024, the Minnesota jury delivered a $364,158.79 verdict in favor of Erik Marciniak for the breach of contract committed by LM General Insurance Company.

Case Background

On August 1, 2022, Erik Marciniak filed a breach of contract lawsuit against his insurance company before the Minnesota State, Hennepin County, District Court. Judge Sullivan Rachna presided over this case. [Case number: 27-CV-22-11411]

Cause

Plaintiff Erik Marciniak filed a breach of contract lawsuit against Defendant Liberty Mutual Insurance Co. (hereafter Liberty Mutual). Erik Marciniak resided in Minneapolis, Hennepin County, Minnesota. Liberty Mutual, a Massachusetts Corporation authorized to conduct business in Minnesota, had issued an automobile insurance policy to Erik Marciniak before January 10, 2018. This policy, for which Erik Marciniak had paid a premium, included underinsured motorist coverage of $250,000 per person and $500,000 per occurrence. A legal dispute arose between Plaintiff and Defendant concerning the interpretation of specific policy terms and their rights under the automobile insurance policy issued by Defendant and the Minnesota No-Fault Insurance Act, Minn. Stat. Section 658.49. Around January 10, 2018, Erik Marciniak had been driving his 1996 Volvo 850 south on Nicollet Avenue in Minneapolis, Minnesota. At that time and place, Jasmine Ariana Harris, driving a 2002 Saturn SL, abruptly exited a parking lot onto Nicollet Avenue ahead of Erik Marciniak, resulting in a T-bone collision. The collision, caused by Jasmine Ariana Harris's alleged negligence—including failure to maintain a proper lookout, yield the right of way, and control her vehicle—had led to injuries sustained by Plaintiff. Consequently, Erik Marciniak pursued legal action against Jasmine Ariana Harris, who had been insured by Progressive Insurance Co., which had offered a settlement of $20,000 dollars. Plaintiff had notified Liberty Mutual of this potential settlement, and Liberty Mutual had waived its right to subrogate against Jasmine Ariana Harris. Erik Marciniak had qualified as an underinsured motorist under Defendant's insurance policy and Minnesota's No-Fault Automobile Insurance Act. As a result of being underinsured, Plaintiff had claimed entitlement to underinsured motorist benefits as defined in Minn. Stat. Section 658.49 from Liberty Mutual for the injuries sustained. Plaintiff had duly notified Liberty Mutual of the claim and had demanded payment of benefits. However, the Defendant's failure to pay had constituted both a breach of their contract and a violation of Minnesota's No-Fault Act Section 658.49.

Injury

Plaintiff claimed that due to the accident, he had sustained severe physical injuries, encompassing severe and permanent injuries, among others.

Damages

Plaintiff Erik Marciniak sought judgment against Defendant Liberty Mutual as follows: Firstly, he requested a declaration entitling him to receive underinsured motorists benefits from Defendant. Secondly, he sought the reformation of Defendant's policy to comply with the Minnesota No-Fault Automobile Insurance Act. Thirdly, he requested a reasonable sum exceeding $50,000 dollars. Additionally, he sought reimbursement for costs, disbursements, statutory pre-judgment interest, and any other relief deemed just and equitable.

Key Arguments and Proceedings

Legal Representation

Plaintiff(s): Erik Marciniak
- Counsel for Plaintiff(s): Zachary Robert Zellner | Peter E Lind

Defendant(s): LM General Insurance Company
- Counsel for Defendant(s): Marc M Berg | James Curtis Selmer
- Experts for Defendant(s): Steven Moen, M.D. | Rajan Jhanjee, M.D

Claims

Plaintiff had the right to receive underinsured motorist benefits, defined in Minn. Stat. Section 658.49, from Defendant for his injuries. The Defendant's failure to make payment constituted both a breach of their contract and a violation of Minnesota's No-Fault Act § 658.49.

Defense

The Defendant denied all claims and asserted affirmative defenses. The Defendant stated that Plaintiff did not mitigate his damages. His claim may be partly or entirely barred due to his own comparative fault in the collision. Further, if Plaintiff did recover any amount from the lawsuit, Defendant had the right to offset Plaintiff’s recovery under Minn. Stat. Section 548.251, Minn. Stat. § 65B.51, or other relevant laws governing deductions and offsets.

Expert Testimony

Defendant brought in Steven Moen, M.D. and Rajan Jhanjee, M.D, both orthopedic surgeons to testify on subjects covered in their independent medical examination (“IME”) report regarding Plaintiff Erik Marciniak,

Jury Verdict

On February 8, 2024, the Minnesota jury delivered a verdict in favor of the Plaintiff. The jury determined that the Plaintiff had sustained a permanent injury as a result of the accident. Accordingly, they awarded him $34,158.79 for his medical expenses, out of which $449 had been awarded for the diagnostic X-rays. Additionally, $180,000 was awarded for past non-economic damages and $150,000 for future non-economic damages. Thus, a total of $364,158.79 was awarded to Erik Marciniak.

Court Documents:

Available upon request

Minnesota jury Awards $364k Verdict For Breach of Contract by LM General Insurance Company