George jetson an employee of spacely construction company

Assignment Help Business Law and Ethics

Reference no: EM13469094

George Jetson, an employee of Spacely Construction Company, claims to have injured his back as a result of a fall while repairing the roof at of the 1313 Mockingbird Lane Apartments. He filed a lawsuit against Herman Munster, the owner of 1313 Mockingbird Lane Apartments, asking for damages of $1,500,000. George claims that the roof had rotten sections and that his fall could have been prevented if Mr. Munster had told Spacely Construction about the problem. Mr. Munster notified his insurance company, Dewey, Cheatem and Howe Insurance (DCH), of the lawsuit. DCH must defend Mr. Munster and decide what action to take regarding the lawsuit.

Some depositions and a series of discussions took place between both sides. As a result, George Jetson offered to accept a settlement of $750,000. Thus, one option is for DCH to pay George $750,000 to settle the claim. DCH is also considering making George a counteroffer of $400,000 in the hope that he will accept a lesser amount to avoid the time and cost of a trial. DCH's preliminary investigation shows that George's case is strong; DCH is concerned that George may reject their counteroffer and request a jury trial. DCH's lawyer spent some time exploring George's likely reaction if they make a counteroffer of $400,000.

The lawyer concluded that its is adequate to consider three possible outcomes to represents George's possible reaction to a counteroffer of $400,000: (1) George will accept the counteroffer and the case will be closed; (2) George will reject the counteroffer and elect to have a jury decide the settlement amount; or (3) George will make a counteroffer to DCH of $600,000. If George does make a counteroffer, DCH decided that they will not make additional counteroffers. They will either accept George's counteroffer of $600,000 or go to trial.

If the case goes to a jury trial, DCH considers three outcomes possible: (1) the jury may reject George's claim and DCH will not be required to pay any damages; (2) the jury will find in favor of George and award his $750,000 in damages; or (3) the jury will conclude that George has a strong case and award him the full amount of $1,500,000.

Key considerations as DCH develops its strategy for disposing of the case are the probabilities associated with George's response to a DCH counteroffer of $400,000 and the probabilities associated with the three possible trail outcomes. DCH's lawyers believe the probability that George will accept the counteroffer of $400,000 is 0.10, the probability that George will reject the counteroffer of $400,000 is 0.40, and the probability that George will, himself, make a counteroffer to DCH of $600,000 is 0.50. If the case goes to court, they believe that the probability the jury will award George damages of $1,500,00 is 0.30, the probability that the jury will award George damages of $750,000 is 0.50 and the probability that the jury will award George nothing is 0.20.

Perform an analysis of the problem facing Dewey, Cheatem and Howe Insurance. Summarize your findings and recommendations as to how to proceed.

Reference no: EM13469094

Questions Cloud

Determine under what circumstances and to what extent a : analyze the key arguments for and against the imposition of a legal duty to rescue. next select a company with which

Specify at least one way that a company with which you are : evaluate the likelihood of traditional corporations using social responsibility as an effective competitive strategy.

State a java class named accumulator the class comprises : question define a java class named accumulator. the class contains the following elementsa. an integer variable named

What health problems arise from regularly consuming excess : 1 explain each term and give an example.a. monosaccharideb. dissacharidec. polysaccharide2 what health problems can

George jetson an employee of spacely construction company : george jetson an employee of spacely construction company claims to have injured his back as a result of a fall while

What type of data does that source contain describe in : you have been tasked to devise a program to address the needs of crime victims. to better understand what type of

You can always add a compareto method to a class without : q1. you can always add a compareto method to a class without making it implement the comparable interface so why do you

How does the criminality of persons in organized crime : how does the criminality of persons in organized crime differ from that of conventional criminals? please explain and

If connected such that one cell acts as the battery to : consider two cells the first with al and ag electrodes and the second with zn and ni electrodes each in appropriate

User Account

All Pages