U.S. judge sides with insurer: ‘$1.3 million’ insurance settlement offer in Bend off-leash dog-injury claim was a typo

But civil negligence lawsuit against dog owner is due to go to trial in July

BEND, Ore. (KTVZ) – A Bend couple argued in federal court that they were offered a $1.3 million insurance settlement after they filed a claim that the woman was injured when she was knocked off her feet by a man’s off-leash Great Pyrenees dog while walking on a local trail, court records show.

But Debra and Kevin Kilroy and their lawyer’s quick acceptance of the typed-up “$1300,000” settlement offer brought a quick response from Allstate: It was a typo, and the offer was actually $300,000, the policy limit on the dog owner’s homeowner’s insurance, The Oregonian/Oregon Live reported Sunday.

The couple held firm, saying Allstate had asserted (during their lawyer's disputed phone call for clarification) that the dog owner also had a $1 million umbrella policy, something both sides now agree he did not have.

The matter went to federal court, where U.S. District Judge Michael J. McShane earlier this month tossed the “million-dollar” settlement, saying, “Reasonable people would have known that the million-dollar figure represented a fanciful settlement offer at best.” He noted several other typos in the written offer, the newspaper reported.

But the matter is not over. In December of 2022, the Kilroys filed a civil lawsuit against the dog owner, Henry Paik, in Deschutes County Circuit Court, alleging his negligence led to her injuries in the Dec. 8, 2020 incident. Paik has denied the claims, and a six-day jury trial is currently scheduled for July 23, court records show.

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