Peden v. State Farm Mutual Automobile Insurance Co.

BACHARACH, Circuit Judge.

This case involves the handling of a claim under policies providing underin-sured-motorist coverage. The tortfeasor, Mr. Terrill Graf, bought his fíancée a van for her 50th birthday. Celebrating the birthday and new purchase, Mr. Graf drank liquor and then gathered four friends in the van. The plaintiff, Ms. Wendy Peden, was one of those friends. She says that she expected Mr. Graf only to show off the van and to photograph the group. But Mr. Graf drove away with his friends in the van. He crashed, causing serious injuries to Ms. Peden. She obtained $240,000 in…