Settlement Reached in Mitsubishi MU2 Airplane Crash Near Malad, Idaho
- Kreindler & Kreindler obtained a successful settlement with CIGNA following a 10-year effort.
- Despite CIGNA’s denial, partners Brian Alexander and Frank Fleming argued the aircraft was covered under a liability policy issued near the time of the accident.
A 10-year effort to recover under a CIGNA aircraft insurance policy recently ended with an agreement that CIGNA would pay a substantial confidential sum to the families of victims of a 1996 Mitsubishi MU2 airplane crash. The Utah crash killed several Coca-Cola Company and advertising agency executives. By 1998, Kreindler & Kreindler had successfully obtained settlements for the families against most defendants, including the manufacturer of the aircraft. Nevertheless, CIGNA refused to cooperate or settle, and the firm refused to yield in our efforts to maximize the compensation to our clients.
The issue raised in our declaratory judgment action against CIGNA concerned whether the accident aircraft was covered under a liability policy issued to an entity that had leased the aircraft near the time of the accident. CIGNA claimed its insured was not the lessee of the airplane when it crashed.