Naperville, Illinois – Personal injury attorney John J. Malm, of John J. Malm & Associates, has received the prestigious “Above the Policy” award from the Million Dollar Trial Lawyers Association after securing a landmark $452,500 settlement in a case where the insurance company initially offered only its $100,000 policy limits. The award recognizes extraordinary results in cases where a plaintiff recovers an amount exceeding the defendant’s insurance coverage.

Malm, working alongside colleague David Wilson, represented a woman who suffered soft tissue injuries to her neck and back, as well as debilitating migraines, after a heavy rear-end collision. Medical bills totaled $96,000, but the case carried risks given the nature of the injuries and the typical reluctance of carriers to pay above policy limits.

The Case

In this matter, Malm and Wilson sent the insurance company a policy-limits demand with a 30-day deadline. For personal reasons, the insurer requested an extension to depose the plaintiff. Malm and Wilson agreed on the condition that the deposition be set quickly. After the deposition, they restated the 30-day deadline.

On the 30th day, as a courtesy, Malm and Wilson reminded in-house counsel of the deadline. The carrier responded by saying they wanted to obtain expert evaluations. At that point, the demand for limits was withdrawn, and Malm and Wilson advised that the defendant, herself an attorney, should retain personal counsel. The defendant was reportedly furious with the carrier for missing the settlement opportunity.

Five months later, the insurer attempted to tender the $100,000 policy limits, but Malm and Wilson rejected the offer, explaining that the opportunity had passed. The case proceeded, with our client receiving more than four times the policy limits. Mediation was attempted and failed before the parties ultimately agreed to the final settlement.

Bad Faith Claims

Ordinarily, the limits of coverage stated in the declarations of a driver’s policy define the cap of an insurer’s liability. The coverage limits represent the most that an injured plaintiff can expect, even in cases involving significant harm. However, when an insurer unreasonably refuses to settle within those limits, the doctrine of bad faith creates an important exception. Under this doctrine, if the insurer fails to settle reasonably and in a timely manner, it exposes itself to potential liability beyond the coverage limit.

This is a remedy that plaintiffs can sometimes pursue when tactics of delay, deny, and defend are being waged. It shifts the balance of power, giving injured parties meaningful leverage in negotiations that might otherwise be dominated by insurers’ resources and delay strategies.

Insurance Tactics: Delay as a Strategy

Industry experts widely acknowledge that insurance companies use delay not merely as inefficiency, but as a deliberate strategy to conserve resources. By stalling valid claims, insurers are able to hold onto money longer, invest those funds for their own benefit, and strengthen their financial positions. At the same time, delay puts pressure on injured plaintiffs, who may be facing mounting medical bills or lost income, to settle for less than full value just to move forward.

This imbalance underscores the importance of a plaintiff’s ability to pursue bad faith remedies. When insurers engage in delay, deny, and defend tactics, the threat of bad faith litigation provides a powerful counterweight. It ensures that plaintiffs are not left without recourse, and it often forces carriers to reassess the true risks of pushing a case too far.

“A skilled attorney knows how to stand up to these tactics and turn the tables,” Malm said. “By using the tools the law provides, we can fight back against delay, deny, and defend strategies, and win meaningful results for our clients.”

A Landmark Result

“The doctrine of bad faith, which allows a plaintiff to pursue a direct cause of action against the insurer when it refuses to settle reasonably and in a timely manner, is one of the most powerful sources of leverage we have as plaintiff’s attorneys,” Malm explained. “By signaling that option here, we changed the balance of power in negotiations and achieved a recovery far beyond the limits of coverage.”

What makes the result particularly striking is that the settlement was achieved without ever filing a second lawsuit against the insurance company. The knowledge that such a cause of action could be pursued was enough to compel the insurer to come to the table and negotiate fairly.

An Exclusive Recognition

The “Above the Policy” award is reserved for attorneys who achieve recoveries in excess of the coverage limits stated in a defendant’s policy. Only a small number of attorneys nationally are eligible for this honor, making the recognition both exclusive and rare. Proving a result above the cap set by a carrier requires not only legal skill, but also the ability to strategically apply doctrines like bad faith in order to protect clients and achieve justice.

“It is truly an honor to be recognized with this award,” said Malm. “But more important than any recognition is the trust our clients place in us. We stand ready every day to help them get the justice they deserve.”

CASE INFORMATION

Jasper County, Indiana
Andrea Thompson vs. Cindy Ye
Case No. 37D01-1812-CT-01153