This is the case of Gitelman v. Wilkinson, in U. S. District Court Western District of Pennsylvania, filed by Pro se Plaintiff Leslie Gitelman ("Gitelman"), a retired attorney.

According to Gitelman’s complaint, on November 26, 2019, she was walking down Redfern Drive in Allegheny County, when a motorist, Dawne Wilkinson ("Wilkinson"), struck her with his vehicle. Gitelman filed a lawsuit against Wilkinson in the Civil Division of the Allegheny County Court of Pleas. Gitelman settled her suit, and the defendant’s insurance company issued her a settlement check for $100,422.47. Gitelman also entered into a separate settlement agreement with Wilkinson for $150,000.00.

Shortly thereafter, Gitelman became discontented with her attorney at the time, George M. Kontos ("Kontos"). Gitelman was unsatisfied with his negotiation of the settlement.

Even though Gitelman had already received the settlement check for $100,422.47, she never deposited the check, instead taking the position that she was defrauded, and was entitled to more from her own insurance company, and from the defendant’s insurer.

Gitelman also made bad faith claims against Wilkinson’s insurer on the basis that his insurance company owed her a duty of good faith and fair dealing.

She refused to sign the release required by the settlement agreement, so Wilkinson filed a Motion to Enforce the Settlement Agreement. On April 8, 2021, the Honorable Michael A. Delia Vecchia issued an Order granting Wilkinson's request to enforce the terms of the settlement agreement.

Gitelman's claims against Wilkinson were ordered released in exchange for a settlement of $150,000.00 pursuant to the terms and conditions of the written release, which was attached to Wilkinson’s Motion to Enforce the Settlement marked as Exhibit A. The terms and conditions of the Power of Attorney and Fee Agreement between Gitelman and George M. Kontos were also ordered to be enforced. The court confirmed that Dawne Wilkinson, by and through her insurance provider, shall pay Leslie R. Gitelman $100,422.47, and George M. Kontos $49,577.53.

As to the issue of bad faith raised by Gitelman, Western District Judge Stickman observed the case of Strutz v. State Farm, 609 A.2d 569 (Pa. Super. 1992) that an insurer does not owe a duty of good faith in dealing with third-party claimants, stating in pertinent part: “the duty to negotiate a settlement in good faith arises from the insurance policy and is owed to its insured, not to a third-party claimant. By asserting its policy right to handle all claims, the insurer assumes a fiduciary position toward the insured and becomes liable to act in good faith and with due care in representing the interests of the insured.” Strutz, 609 A.2d at 571.

The holding in Strutz is that a third-party claimant is barred from bringing a cause of action for bad faith against an alleged tortfeasor’s liability insurance provider. Judge Stickman found that Gitelman did not have legal standing to file a lawsuit for bad faith against Wilkinson’s insurer.

Date of Decision: March 24, 2022

Gitelman v. Wilkinson, U. S. District Court Western District of Pennsylvania No. 2:21-CV-1696, 2022 WL 874624 (W.D. Pa. Mar. 24, 2022) (Stickman, J.)