In the largest settlement to date in a Pennsylvania insurance bad faith case, the Princeton Insurance Co. has agreed to pay $20 million to settle a claim brought on behalf of a tavern that was hit with a $75 million verdict in a Dram Shop Act suit after the insurer refused to settle the case for the tavern’s policy limit of $1 million.

In Tuski v. Princeton Insurance Co., the tavern had assigned its rights to pursue the bad faith claim to Joseph Tuski, a former highway construction worker who was left quadriplegic after he was struck by a drunken driver and thrown more than 100 feet.

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