Donna Driver gets into a car accident with Vic Victim in Cleveland, Ohio. Vic sustains severe injuries. Donna admits liability as she knows that she ran a red light by mistake, thus causing the accident. Donna has auto insurance with an insurance company called Gekko. Her policy has a liability coverage limit of $100,000. Unfortunately, Vic's medical bills alone run close to $100,000 and between that and his missed work and pain and suffering, he appears to have a strong case to recover significantly more than that.

However, Vic is in no mood for litigation. He therefore offers to settle the whole case for $100,000. Donna pleads with Gekko to settle the case for the $100,000, as she knows that at trial, she will probably get hit with a verdict for more than that. However, Gekko refuses, saying that it will not settle for more than $50,000. If that amount won't be accepted, it will take its chances at trial.

The case goes to trial and Vic eventually wins a verdict of $200,000. $100,000 is paid by Gekko and Donna is forced into bankruptcy because she cannot pay off the remaining $100,000. Donna sues Gekko in Ohio civil court, claiming that under Ohio law, the insurance company had a duty to negotiate in good faith. Donna claims that it was obvious that Vic's case was worth more than $100,000 and that Gekko's intransigence caused her now to face bankruptcy. She therefore asks that Gekko be forced to pay the full $200,000 to Vic so that she does not have to.