Plattner v. State Farm Mut. Ins. Co
In Plattner v. State Farm Mut. Ins. Co., 168 Ariz. 311, 314, 812 P.2d 1129, 1134 (App. 1991), the plaintiff-attorney represented one of State Farm's insureds in a direct bad faith action against State Farm. Id. at 312-13, 812 P.2d at 1130-31.
In the course of that litigation, there was a dispute over whether an amount directed to the insured was:
(1) intended to settle the bad faith suit, or;
(2) left the bad faith claim in place and was merely a "no strings attached" payment of what was owed under the policy. Id. at 313, 812 P.2d at 1131.
Because Plattner had conversations with a State Farm claims representative on this issue, Plattner became a material witness and was forced to withdraw. Id. at 314, 812 P.2d at 1132.
The underlying bad faith case was settled and Plattner, rather than receiving a full fee, received only 50% of the fee. Id.