Personal Injury Law

State Farm Held Liable

Our serious injury attorneys frequently see cases in which insurance companies refuse to pay valid claims and then turn on their insureds accusing them of fraud.

Last Tuesday, the Western Missouri Court of Appeals upheld a jury verdict of nearly $8.5 million against State Farm Mutual Automobile Insurance Company for breach of contract claims and malicious prosecution against a claim holder. The case originated in 1997 when Jennie Hampton reported that her vehicle had been stolen and filed a claim with her insurer, State Farm. Several days later, the car was found abandoned and burned.

State Farm allegedly investigated the claim and denied it on the grounds that Hampton had listed her engine as being in excellent condition when State Farm contended that the car had suffered an engine failure. The Company further alleged that Hampton and an acquaintance towed the car after the engine failure and burned the vehicle. State Farm took their claims to the district attorney?s office and allegedly pressured prosecutors there to file insurance fraud criminal charges against Hampton and the acquaintance.

The criminal charges were tried and Hampton and the acquaintance were acquitted.

In a 3 - 0 ruling, the Appellate Court affirmed the judgement against State Farm holding that State Farm not only improperly denied the claim but also pressured the prosecutors to file criminal charges against Hampton.

Full post as published by Georgia Injury Lawyer Blog on January 11, 2008 (boomark / email).