State Farm Hit With $13 Million Verdict For ‘Reckless’ Claims Handling

Because of its similarities to allegations made against insurers in recent Hurricane Katrina lawsuits, this Oklahoma verdict will make insurance carriers sit up and take notice. 

2 Comments

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2 Responses to State Farm Hit With $13 Million Verdict For ‘Reckless’ Claims Handling

  1. Layne

    David,
    Do you have any insight into the recent settlement reached in this case? There has been little coverage of it, but from what I can understand it appears State Farm moved for a new trial based on a recent Supreme Court decision (Philip Morris V Williams). In response, the trial judge vacated the original verdict, and de-certified the class. Then State Farm reached settlement.
    Of course, I am not an attorney, and may be misunderstanding all of this.
    Since many of the issues regarding engineering firms/reports are similar in this case to what is happening in Mississippi, I was curious what your take on this development is.
    Thanks!
    Layne

  2. The Williams case said that a jury, when considering punitive damages, should take into account only the damages to the person suing, not to other people. Of the Oklahoma case, I know only what I have read, but it appears there may be a basis for saying the jury improperly considered allleged harm to people other than the plaintiff. I wasn’t aware of the other developments you mention in the case, so thanks for filling me in.