A medical malpractice lawsuit was filed in which the physician’s insurer, Illinois State Medical Inter-Insurance Exchange (ISMIE), refused to pay its $3 million policy limit to settle the case, which was brought by Alizabeth and Alvin Hana. The suit was filed against Drs. Albert and Joyce Chams and Chams Women’s Health Care. At the jury trial, the verdict for the Hanas totaled $6.1 million.
After ISMIE paid its policy limit plus post-judgment interest at 9% and an offset was applied based on a pretrial settlement with other defendants, the doctors were left personally liable for $1.35 million.
The Chamses assigned their bad-faith claim against ISMIE to the Hanas in return for a promise to not enforce the judgment. Then the Hanas sued ISMIE for allegedly breaching its duty to settle.