Farmers Insurance Multi-Million Dollar Verdict Upheld

Farmers Insurance is in a bit of a quandary. It centers around Cristina Anderson who was seriously injured in 2019 when hit by a car driven by Wendy Gibson. Anderson sued Gibson and the city of Sumner, Washington.

The insurance company defended Gibson and Anderson settled out of court with the city.

Gibson’s Farmer’s Insurance policy had $25,000 in her liability policy. A jury awarded Anderson $21 million. Gibson filed Chapter 7 bankruptcy. The court’s trustee took possession of all of Gibson’s legal claims and with court approval, sold them to Anderson.

Since Anderson owned Gibson’s legal claims she was able to sue Farmers. Her attorneys are claiming the insurance company did not adequately defend Gibson. Anderson contends Farmers did her defense with lawyers and adjusters who worked for, and on behalf of the company and for its benefit, and not Gibson’s.

Anderson contends this is a conflict of interest.

The appellate court agreed and said Farmers may have worked in bad faith and violated state statutes involving such legal points. So the $21 million judgement stands for now and the case has been sent back to the lower court to determine where to go next. 

Source link: Insurance Business America — https://bit.ly/4oAJSDM