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Insurer to Pay $20 Million in Bad Faith Case Over Dram Shop Suit
In the largest settlement to date in a Pennsylvania insurance bad faith case, the Princeton Insurance Co. has agreed to pay $20 million to settle a claim brought on behalf of a tavern that was hit with a $75 million verdict in a Dram Shop Act suit after the insurer refused to settle the case for the tavern's policy limit of $1 million. The tavern had assigned its rights to pursue the bad faith claim to Joseph Tuski, a former highway worker who was left quadriplegic after he was struck by a drunken driver.