Insurance Company Bad Faith
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Mold Stories page has many personal stories that talk about the problems with insurance companies and the bad behavior involved in the handling of mold and water damage claims.
If you are involved in litigation against an insurance company, be sure to check out our
Litigation Tips.
The law says that insurance companies are required to act in "good faith," but this law is commonly ignored by some insurance companies. This page will help you learn more about the "good faith" versus "bad faith" insurance companies.
November 13, 2023. State Farm to Pay $36 Million to Valencia County Family After Jury Finds Insurance Company Acted in ‘Bad Faith.’
State Farm is set to pay the second highest “bad faith” civil payment in New Mexico history, according to an attorney representing the family of Andrea Lovato.
A jury ruled this crash really was an accident but the moves State Farm made after Lovato’s death will now cost them tens of millions of dollars.
August 24, 2022. State Farm Subsidiary to Pay 100 Million Dollars for Mishandling of Hurricane Katrina Clams--in litigation for 16 years (2022)
This case started with a whistleblowers case that shed light on State Farm's mishandling of Hurricane Katrina claims.
State Farm dragged this case through the court system for 16 years.
November 16, 2020. Delay Tactics Highlight Trend in Denied Claims.
Dr. Paul Wills of Fort Smith was injured in a car accident in 2015. Five years later, as 2020 draws to a close, he’s still waiting to be paid -- joining thousands of others using the courts to battle what plaintiffs say are unfair delay tactics by insurance companies.
In May 2019, Wills won a summary judgment of $500,000, plus $200,000 for attorney’s fees and a $60,000 penalty against Encompass — money that he is still waiting for.
Note : This is a common game of deny and delay that is used by insurance companies. It is known as "starving the plaintiff."
October 30, 2020. Allstate Sued Over Target Date Funds in $5 Billion 401(k) Plan.
Allstate Corp. was hit with a proposed class action in Illinois federal court Friday claiming its $5 billion 401(k) plan steers participants toward a poorly performing suite of target date funds.
The lawsuit, filed by plan participant Katherine Cutrone, takes aim at a suite of target date funds from Northern Trust Corp., which isn’t named as a defendant. The funds, which serve as the Allstate plan’s default investment option, have performed worse than 70% to 90% of their peer funds for nearly a decade.
- Read the article
- Federal Judge Affirms 401(k) Lawsuit Against Allstate Insurance Company.
Read the article
October 30, 2020. Nick Nolte Wasn't In Good Hands with Allstate. Files lawsuit against Allstate for damages to his home that occurred during the Woolsey Fire.
Actor Nick Nolte and his wife are suing Allstate Insurance Co. over the insurer’s handling of their claim filed after their Malibu property sustained significant damage during the 2018 Woolsey Fire.
The 79-year-old “The Prince of Tides” actor and spouse Clytie Lane brought the lawsuit Thursday in Los Angeles Superior Court, alleging breach of contract, negligence and intentional infliction of emotional distress. The couple seek unspecified damages.
July 14, 2020. 6th Circuit Approves Class Action for Kentucky Underpayments by State Farm.
A federal appellate court has cleared the way for a class-action lawsuit to proceed against State Farm Fire and Casualty Insurance Co. that may force the insurer to correct underpayments paid to some 65,000 policyholders.
A 6th Circuit Court of Appeals panel affirmed a district court ruling that certified a class of plaintiff’s who may proceed with breach-of contract claims against State Farm. A key issue in the case has already been decided in 2018, when the 6th Circuit affirmed a trial court ruling that insurers cannot include labor costs when calculating depreciation to determine a property’s actual cash value (ACV) under Kentucky law.
June 11, 2020. Genuine Dispute Summary Judgment Reversed for Abuse of Discretion and Trial of Fact Questions About Expert Opinions.
The Fadeeff court said that the use of experts does not automatically insulate an insurer from bad faith liability under the genuine dispute doctrine. (Citing Guebara v. Allstate Ins. Co. (9th Cir. 2001) 237 F.3d 987, 994.)
In particular, the Fadeeff court said that where the dispute is purely factual, such as differing opinions of experts, whether there was a genuine dispute can only be decided on a case-by-case basis. (Citing Chateau Chamberay Homeowners Assn. v. Associated International Ins. Co. (2001) 90 Cal.App.4th 335, 348.)
The Fadeeff court quoted Chateau Chamberay’s list of circumstances where a biased investigation claim should go to jury: (1) the insurer was guilty of misrepresenting the nature of the investigatory proceedings; (2) the insurer’s employee’s lied during the depositions or to the insured; (3) the insurer dishonestly selected its experts; (4) the insurer’s experts were unreasonable; and (5) the insurer failed to conduct a thorough investigation.
The Fadeeff court also reversed the summary adjudication on punitive damages, finding that State Farm failed to carry its burden to show that the Fadeeffs could not prove that State Farm acted with an absence of malice, oppression or fraud.
March 20, 2019. Litigation Funding and The Invisible Gorilla.
Ever hear of the psychological experiment known as the Invisible Gorilla? It goes like this: You’re asked to watch a brief video of a group of people moving randomly about in a pack. Several of these people are wearing white shirts and passing a ball amongst themselves. You’re asked to count the number of passes that occur. During the video, a person dressed as a gorilla enters the middle of the pack and, while facing the camera, thumps his chest for a few seconds then exits. The video ends and you’re asked to give the number of times the ball was passed. Most likely, you get that right. You’re then asked if you saw the gorilla. Huh, what gorilla? Yes, despite being on-screen for 9 seconds, half of all participants in the experiment never see the gorilla.
Ever hear of the lawsuit captioned Avery vs. State Farm? It goes like this: 20 years ago, an Illinois jury awarded $456 million to plaintiffs in an action against State Farm for its use of inferior car parts in car repairs; conduct which violated State Farm’s own insurance policies. Following a finding of fraud, an additional $730 million was added to the verdict bringing the total to roughly $1.2 billion. That amount was then reduced to $1.01 billion on appeal. State Farm wasn’t done though. It filed yet another appeal, this time with Illinois’ highest court, which granted State Farm the ultimate victory: The verdict was completely overturned.
The events of Avery gave rise to a second suit against State Farm. In Hale vs. State Farm, the Avery plaintiffs alleged State Farm had not only orchestrated the recruitment of Lloyd Karmeier but also had secretly bankrolled his successful bid to be become an Illinois Supreme Court Justice in 2004. Why? Because the Avery case was on appeal at that time and Justice Karmeier would now be available to influence its fate, which is precisely what happened.
Hale was filed in 2012 and it alleged the events leading up to, and following, the Karmeier election violated the Racketeer Influenced and Corrupt Organizations Act (RICO). Again, the assertion here was that State Farm had organized and managed Karmeier’s campaign behind the scenes; that State Farm had covertly funneled millions of dollars to support the campaign through intermediary organizations over which State Farm had exerted considerable influence. Hale dragged on for 6 years before settling in 2018 for $250 million. The settlement was approved on the basis that only one of roughly 5 million plaintiffs objected. Well, with the claim now going into its 20th year and with individual net recoveries averaging less than $50, it’s a wonder anyone made the effort to object.
It’s unfortunate Hale settled and the public was denied a look behind the curtain. Still, the circumstantial evidence is ample and more than enough to suggest the insurance giant pulled strings and levered its enormous influence to achieve that which it could not before a jury. That’s a huge problem. But we have an even bigger problem: you and me. The State Farms of the world will always rent-seek and will always attempt to change the rules of the game to ensure their victory. We know this. The problem is that you and I aren’t doing enough to stop our country’s seemingly inexorable slide from democracy into corporatocracy? We’ve become jaded, resigned, disenfranchised and, according to experts, blind; blind to what’s around us and blind to the very fact of our blindness. That’s the takeaway from the Invisible Gorilla experiment.
February 19, 2019. State Farm Penalized by San Antonio Jury.
Shannon Loyd and Sandrine Shelton-Denbow of the Loyd Law Firm, P.L.L.C. obtained an unanimous verdict of $379,073.59 for their client against State Farm Lloyds based on its unreasonable investigation of hail and wind damage to their client's home from the historic hail storms that slammed San Antonio, Texas in April 2016.
December 28, 2018. Another class action lawsuit against State Farm Insurance Company.
Insurance Company Busted for Ripping Off Americans By Under-Valuing Their Claims
A new State Farm class action lawsuit says the insurance company wrongfully values total losses in vehicle accident claims. Plaintiffs allege that despite the fact that State Farm markets itself as an honest and reputable company, the insurance carrier regularly denies providing total losses to claimants after vehicle accidents.
November 10, 2018. Jury Delivers $25.5 Million "Statement" (Verdict) to Aetna to Change Its Ways.
An Oklahoma jury has awarded $25.5 million to the family of a cancer patient denied coverage by Aetna, with jurors saying that the insurer acted "recklessly" and that the verdict was meant as a message for Aetna to change its ways.
The award is believed to be the largest verdict in an individual "bad faith" insurance case in Oklahoma history, one court observer said, and could have major ramifications across the country for a form of cancer treatment called proton beam therapy.
The case revolved around the 2014 denial of coverage for Orrana Cunningham, who had stage 4 nasopharyngeal cancer near her brain stem. Her doctors wanted her to receive proton beam therapy, a targeted form of radiation that could pinpoint her tumor without the potential for blindness or other side effects of standard radiation.
Aetna denied her coverage.
November 1, 2018. Federal District Court in California Permits Ady Barkan’s Class Action to Move Forward Against Health Net.
Ady Barkan is willing to give his last breath to bring about change in our managed health care system. With a ruling today by United States District Court Judge Michael Fitzgerald, denying Health Net’s motion to compel arbitration of Mr. Barkan’s class action lawsuit, the change sought by Mr. Barkan will be litigated in federal court. His attorneys, Rich Collins and Damon Eisenbrey of Callahan & Blaine in Santa Ana, California, celebrated the ruling as a huge victory for Mr. Barkan and for all consumers who are too often forced to arbitrate their claims against large corporations.
Two years and two weeks ago, Mr. Barkan was diagnosed with amyotrophic lateral sclerosis (“ALS”). The progressive degeneration of ALS eventually leads to the brain’s inability to initiate and control muscle movement, causing those who suffer from the disease to lose the ability to speak, eat, move and breathe. But before the ALS robs Mr. Barkan of his ability to speak, Health Net sought to silence him with its motion to compel arbitration.
On June 29, 2018, Mr. Barkan filed a class action lawsuit against Health Net in an effort to change Health Net’s practices and to seek redress for the thousands of other policyholders who have suffered from Health Net’s alleged bad faith insurance practices. Ohad Barkan v. Health Net of California, Inc., et al., Case No.: CV 18-6691-MWF (ASx).
But Mr. Barkan’s lawsuit goes well beyond Health Net’s denial of his treatment. Mr. Barkan is suing Health Net for breaching its promise to deliver covered, medically necessary health care, and to challenge what he claims are Health Net’s bad faith, deceptive and unfair insurance practices on behalf of all of those other Health Net insureds who have suffered, and in the future will suffer, wrongful denials of claims because of Health Net’s ambiguous “Experimental or Investigational” and “Medically Necessary” exclusions and bad faith insurance practices.
After the hearing, Mr. Barkan had this to say:
“Tens of millions of Americans are mistreated by their health insurance companies. These insurance companies delay and deny coverage every day, and families like mine bear the burden. Then, they use unconscionable binding arbitration agreements to prevent us from enforcing our legal rights. This ruling is a major victory for patients like me who need access to healthcare and access to the American courts. I brought this lawsuit in order to highlight the need for single-payer Medicare for All. Along the way, we are also going to highlight how the mandatory arbitration system harms so many families like mine. I am excited about today's ruling, and I look forward to bringing my claims—and the claims of thousands of other members of our class action—in front of a jury.”
October 10, 2018. Woman wins $2 million jury verdict from State Farm.
A Lake County jury has awarded a woman $2.3 million for car accident injuries going back to 2007.
It is a significant judgment for a local jury, said the woman’s attorney and longtime court officials.
The case dragged on. State Farm hired doctors and a medical billing clerk to refute the costs. They also hired biomechanical engineers and a private detective to follow and videotape Brower. Copeland had to counter with his own experts.
NOTE: It's typical for State Farm and other insurance companies to hire "bought and paid for" doctors who will write reports with the conclusion dictated by the insurance company. It is also typical for State Farm and other insurance companies to hire private investigators to harass, follow and intimidate policyholders. Read more about these crimes and litigation tactics on our Litigation Tips page.
September 14, 2018. Response to the $250 million settlement being offered to State Farm. It's a travesty of justice!!
On Sept. 4, the collision repair industry was astonished to learn that State Farm was granted preliminary approval of a $250 million settlement in lieu of facing trial in a federal class action lawsuit (Hale et al v. State Farm et al) in which the nation’s largest insurance company was accused of rigging the Illinois justice system to overturn the 1999 Avery et al v. State Farm aftermarket parts case, which held a verdict of over $1 billion.
AASP/NJ Executive Director Charles Bryant believes the settlement is a “travesty of justice.”
Bryant continued, “When I heard about the settlement, I first thought that maybe I was dreaming. I could have swallowed heavy and lived with a $250 million settlement to bring this to an end. To hear that State Farm gets to deny liability and consider the claims without merit after 20 years of litigation that started because an insurer attempted to shortchange its own insureds, ultimately going so far as to be accused and sued for basically buying a judge to get its way while claiming to be 'your good neighbor' ... That will never sit right with me. Anyone who conducts themselves in such a manner is not someone I would consider a good neighbor."
September 6, 2018. State Farm avoids $8.5B lawsuit with a $250 million settlement.
Another example of the failure of our legal system. State Farm Insurance Company gets away with criminal activity (racketeering). Pays only $250 million to settle $8.5 billion debt---after dragging it out in the courts for 19 years.
State Farm, America’s largest auto insurance company, paid a $250M settlement to a group of customers right before a long-awaited racketeering trial was scheduled to begin this week.
The settlement is the anticlimactic finale of a 19-year-long scandal involving allegations of fraudulent car parts and crooked judges that would have cost the insurance company $8.5B.
Brief history of the case:
In 1999, State Farm class-action plaintiffs won $1.19B when an Illinois state court determined that the insurer had replaced quality car parts with junk components.
Then in 2004 State Farm allegedly spent $3.5M getting “State-Farm-friendly” judge Lloyd Karmeier elected. Karmeier immediately threw out the case — exonerating State Farm and leaving customers nothing.
The $250M settlement is less than 3% of what State Farm would have paid for the $8.5B racketeering penalty.
August 22, 2018. State Farm Loses Experts in RICO (Racketeering) Suit Alleging Plot to Elect Judge who then overturned a $1.05 billion judgment against the company.
An Illinois federal judge Tuesday blocked State Farm from presenting testimony from several experts, including a former state appellate judge, as it defends against a class action accusing it of orchestrating a scheme to elect an Illinois Supreme Court justice to help overturn a $1.05 billion judgment.
In a barrage of rulings issued before the case goes to trial in early September, U.S. District Judge David Herndon granted the class’ motion to exclude the expert opinion of Justice Sheila O’Brien and other experts for State Farm.
Another story of David vs. Goliath. Learn about Brian Vukadinovich vs Unique Insurance Company.
To learn more about Brian's success in federal court and to learn about the bad faith behavior of Unique Insurance Company, read the following documents and watch the video.
Brian also has a book that will soon be released, titled "Motion for Justice -- I Rest My Case."
Order in the Circuit Court of Cook County, Illinois, in Jonathan Hunlede v. Unique Insurance Company where the judge sanctioned Unique Insurance Company $60,000 and awarded attorney fees in the amount of $29,493.75 and costs in the amount of $1,905.60 where the judge cited Unique Insurance Company's "extraordinary vexatious and unreasonable" behavior. April 5, 2017. Read the Circuit Court Order (order for sanctions against Unique Insurance Company).
Final Order and Findings of Fact In the Matter of Unique Insurance Company Before the Indiana Commissioner of Insurance, Warrant Number 11563-MC12-0831-007. January 9, 2015. Read the Final Order (from the Indiana Dept of Insurance).
Examination Warrant by Indiana Department of Insurance against Unique Insurance Company. October 3, 2012. Read the Examination Warrant (from the Indiana Dept of Insurance).
Jury Awards $3.9 Million (against Unique Insurance Company) for DUI Crash. June 24, 2015. To read the article, click here.
Pro Se Litigant (Brian Vukadinovich) wins in Federal Court. To watch the video, click here.
May 8, 2018: Federal Court Sets Dates for Trial of Racketeering Case Against State Farm Insurance Company. Read the article.
A federal court has set the trial dates for Hale vs. State Farm, a class-action lawsuit alleging that State Farm secretly bankrolled the 2004 election campaign of Illinois Supreme Court Justice Lloyd Karmeier.
A jury trial is scheduled to begin at 9 a.m. on Sept. 4 in the U.S. District Court for the Southern District of Illinois, with Judge David Herndon presiding. The court has allotted for the trial to continue through Oct. 12, if needed.
April 19, 2018: Allstate and First National Accused of Cheating Consumers out of Thousands on Wrecked Vehicles. Read the article.
Two new class-action lawsuits accuse Allstate Insurance Company and First National Insurance Company of America (a Safeco company), of deliberately reducing the value of vehicles in total loss insurance claims, using phony data to reduce the claim payments to consumers “by hundreds or thousands of dollars,” according to Hagens Berman. Attorneys say other auto insurance providers are likely engaging in the same fraud.
April 12, 2018: Jury Finds GEICO Insurance Guilty of Bad Faith, Breach of Contract, Inflicting Emotional Distress on Disabled Irvine Man, Awards Almost $23 Million in Damages. Read the article.
Orange County, California, jury found GEICO Insurance company guilty of operating in bad faith and using organization-wide stalling tactics to drag out an auto insurance policy settlement with a disabled Irvine businessman for almost six years.
"The findings of the jury underscore the importance of insurance companies to act fairly, promptly, equitably and in the public interest, rather than using their size and power to limit disbursements and maximize their gains."
February 13, 2018: U.S. District Court Judge David Herndon refuses to dismiss RICO (racketeering) case against State Farm. Read the article
U.S. District Judge David Herndon on Feb. 6 denied summary judgment to State Farm on a $9 billion racketeering claim.
Lead plaintiff Mark Hale seeks damages from State Farm claiming defendants tainted the Illinois Supreme Court by securing Justice Lloyd Karmeier’s election in 2004.
Hale claims Karmeier improperly participated in reversal of a billion-dollar judgment in a class action, Avery v. State Farm, in 2005.
He seeks to recover the judgment, roughly triple it with interest, and triple the result for punitive purposes.
The lawsuit seeks damages not only from State Farm but also from Illinois Civil Justice League director Ed Murnane and State Farm employee William Shepherd.
May 11, 2017: California Supreme Court Rebuffs Insurance Industry Assault on Proposition 103 Rate Protections. Read the article
The California Supreme Court has rebuffed an assault by Mercury Casualty Co., State Farm, Allstate, Farmers and other insurance companies on Proposition 103, the landmark insurance reform law that has saved California consumers over $100 billion since voters passed it in 1988. The Court let stand a lower court ruling that upheld a $16 million reduction in the homeowners rates charged by Mercury.
Proposition 103 requires insurance companies to open their books and justify their rates before they go into effect. Regulations bar insurance companies from charging excessive rates and passing through unjustified expenses to policyholders. And the law allows consumers to challenge applications for excessive rates.
May 1, 2017: State Farm "wiretapper" attorney David V. Jones leaves his own law firm to join Akerman LLC law firm. Read the article.
Did Akerman conduct any due diligence before hiring David V Jones?
December 6, 2016: Justices Uphold Katrina Fraud Verdict Against State Farm. Read the article
A unanimous Supreme Court on Tuesday upheld a jury verdict that State Farm Fire and Casualty Co. committed fraud against the federal government after 2005’s Hurricane Katrina.
Their case gave rise to other claims that Illinois-based State Farm defrauded the National Flood Insurance Program. Last year, Mississippi filed its own civil fraud lawsuit against State Farm, saying the state paid as much as $522 million to State Farm policyholders after the company manipulated the reports of adjusters and engineers to limit its responsibility.
November 26, 2016: State Farm Ordered To Refund Rate Inflations Back to California Policyholders. Read the article
A court has ordered insurance company State Farm to repay California policyholders millions of dollars in a case that stems from a petition filed by the Consumer Federation of California (CFC) questioning the company’s decision to raise rates in July 2015.
As a result of the decision, 1.7 million policyholders will be refunded about $104 million.
September 19, 2016: State Farm Policyholders Get Class-Action Status in $1 Billion RICO Lawsuit. Read the article
A federal racketeering lawsuit involving State Farm and allegations of funneling money into the election of a state judge has been granted class-action status, potentially benefiting more than 4 million policyholders.
The 2012 case, if successful, could result in a more than a $7.6 billion payout from State Farm for the class.
There is an extensive amount of information on the Internet regarding insurance company bad faith and corruption, including the following:
News articles and court documents about bad faith insurance companies and their attorneys:
One of the best examples of bad faith practices is the case of State Farm Insurance Company versus Joseph Radcliff.
Here are the highlights:
September 16, 2014: State Farm filed a second appeal with the Indiana Supreme Court. The court ruled against State Farm again!! Here's an excerpt from the court ruling:
"Simply put, the record does not reveal fraud or any unfair impediment to State Farm’s ability to fully and fairly defend against Radcliff’s claim of defamation. After all, State Farm had at its beck and call the complete panoply of pretrial discovery devices, including deposition notices and demands for document production. It was offered access to depose Richards, if it had chosen to take advantage of that opportunity. State Farm availed itself of none of these measures. Had it done so, common sense suggests that it easily could have discovered this ‘new’ evidence prior to the entry of the verdict. Based on the record before us, State Farm’s quest in uncovering this evidence was hampered by its own reluctance to undertake a detailed investigation. Because we will not grant State Farm relief from its own omissions, we affirm the trial court and conclude that it properly denied State Farm’s T.R. 60(B) Motion."
State Farm vs Radcliff: Indiana Supreme Court ruling against State Farm (September 16, 2014)
October 11, 2013: The Indiana Supreme Court rules against State Farm. Congratulations to Joe Radcliff!! State Farm tried every dirty trick in the book (as usual), but Joe won!! Read more about Joe's story at the following links.
State Farm vs Radcliff: Indiana Court of Appeals rules against State Farm (April 2013)
Here's information from the original trial:
State Farm vs Radcliff: State Farm Loses!! $14.5 Million Jury Verdict Awarded Against State Farm (July 2011)
State Farm filed fraudulent felony charges against the contractor. He was cleared of all charges, and the court said "there was an indication it was an adjuster working for State Farm who actually caused the damage."
Texas attorney David V. Jones
Texas attorney David V. Jones handled many cases for State Farm for several years. Slabbed.org compiled some of the information about David V. Jones and his illegal activities (wiretapping) and sanctions.
Jones previously had his own law firm named Jones Kurth law firm in San Antonio, Texas, but he left his firm in 2007 and joined the Akerman law firm. Did Akerman do any due diligence before they hired Jones?
In the documents posted by Slabbed.org, they refer to Jones as "wiretapper" and "mad dog."
David Jones is nicknamed "wiretapper" because he was caught with illegal wiretapped communications. He plead no contest to the charges. (Jones doesn't always include information about the wiretapping case when he applies to serve "pro hac vice" in other states.)
A comment on Slabbed.org sums up the insurance industry's use of "mad dog" attorneys, as follows:
“Sometimes an insurer has a case that comes along that needs to go away no matter the means or methods. Since not all of the insurance defense bar are unethical scudda beans, sometimes ethical local firms need to be moved out of the way so the right kind of lawyer can come do the dirty work.”
Here are a few of the details from the article and several documents published on Slabbed.org:
“On or about March 7, 1995, in the Southern District of Texas and within the jurisdiction of this court, Defendant, David Jones did intentionally disclose to Theresa Gutierrez, the contents of a wire communication, that is, a non-consensually intercepted and recorded telephone conversation between Mark Rains and Paul Kornfuerer, having reason to know that the information was obtained through the interception of a wire communication in violation of Title 18, United States Code, Section 2511(1) (a), all in violation of Title 18, United States Code, section 2511(1) (c) , 4 (b) (ii).”
Ed Rust (previously the CEO of State Farm) must have heard about Jones because State Farm began using him with regularity. In fact, David Jones’ name surfaced in the Watkins case in Oklahoma (a particularly egregious example of how State Farm treated it’s Oklahoma City claimants after the town was struck by an F-5 tornado). Two things stick out about Watkins--the first being that all the same players for State Farm that hosed people here on the coast after Katrina were present in Watkins such as Haag and Renfroe. The second thing is the judge in Watkins, Richard Van Dyck held State Farm’s lawyers accountable for their misconduct.
Here is what the Court said it the Order finding State Farm in contempt of court:
"Defendant State Farm appeared by and through its counsel of record, Tom Cordell, Anton Rupert, Rustin Strubhar, David Jones and LeAnne Burnett……Upon review of the written legal briefs filed by the parties, after hearing oral arguments, viewing excerpts from videotaped depositions and being otherwise fully advised in the premises this court sustains Plaintiff’s Motion for Contempt and for Sanctions Against Defendant, State Farm Fire and Casualty. In making its ruling, this Court finds the conduct displayed by State Farm and its counsel to be obstructive, contemptuous and in bad faith."
Here are a few of the cases that exposed David Jones' conduct:
David V Jones: Oklahome Court Issues Order for Sanctions and Discipline Against State Farm and Attorney David Jones --Order Sustaining Motion for Contempt and Sanctions in the case of Watkins family vs State Farm Insurance
In Manokoune v State Farm in 2006, David Jones’ professional conduct is again called into question--this time with the court using the term “constructive fraud."
Watkins vs State Farm--Oklahoma case (a particularly egregious example of how State Farm treated it’s Oklahoma City claimants after the town was struck by an F-5 tornado). Two things stick out about Watkins--the first being that all the same players for State Farm that hosed people here on the coast after Katrina were present in Watkins such as Haag and Renfroe. The second thing is the judge in Watkins, Richard Van Dyck held State Farm’s lawyers (including David Jones) accountable for their misconduct.
- Oklahoma Couple Wins $13 Million in Lawsuit Against State Farm (includes attorney David Jones)
- Deposition of State Farm Vice President Susan Hood (attorney David Jones was involved)
Coach Barry Switzer vs State Farm, represented by attorney David V. Jones (Oklahoma case).The Court ruled that State Farm must produce the personnel file for their claims adjuster, Glenda Jewell Vassar.
It is well known that bad faith insurance companies Deny, Delay, Confuse and Refuse to avoid producing documents and evidence and to force plaintiffs to fight in court for many years.
July 16, 2015: State Farm at Risk of Massive Class Action Lawsuit for Fraud.
A recent court decision favoring whistleblowers who sued State Farm Fire and Casualty Co. for fraud in the aftermath of Hurricane Katrina has opened the door for a potential class-action lawsuit against the insurer, attorneys involved with the case say.
Monday’s decision allows the Rigsbys and the government to seek more evidence of widespread fraud against the National Flood Insurance Program.
July 14, 2015: Whistleblowers Win Appeal of State Farm Wind vs. Water Case
"A panel of the U.S. Fifth Circuit Court of Appeals has affirmed a jury's finding in a whistleblower lawsuit that State Farm Fire & Casualty Co. committed fraud against the federal government and submitted a false report to support fraud after Hurricane Katrina. Further, the panel has ordered the case sent back to U.S. District Court in Gulfport for investigation of other State Farm Katrina claims by the whistleblowers, sisters Cori and Kerri Rigsby, and their legal team."
"The ruling opens the possibility for a trial to determine whether State Farm's fraud was more widespread, as the Rigsbys claim. The panel found the Rigsby's allegations, coupled with the jury's verdict, justify further investigation."
The appellate panel concluded: "In this case, there was evidence that (State Farm) adjusters were effectively told to presume flood damage instead of wind damage. There was also evidence that State Farm knowingly violated (the law), concealed evidence of wind damage, and strong-armed an engineering firm to change its reports."
April 22, 2015: Mississippi Files Katrina-Related Lawsuit Against State Farm
- Read the related article titled "Unethical claims cultures promote outcome oriented expert reports"
February 27, 2015: State Farm to Pay $352.5 Million to Settle Case of Overcharging Texas Insurance Customers
February 27, 2015: Judge Ordered to Give Testimony in Lawsuit Against State Farm
Storm of Money: Insider Tells How Some Insurance Companies Rig the System (2014)
Ex-State Farm Agent Changes Plea in Kansas Fraud Case (2014)
State Farm Could Owe Texans $0 to $1 Billion (2009)
Insurance Companies Forced to Pay Denied Claims (2014)
State Farm Rate Debate Hinges on $1 Billion Question (2009)
Schumer Lambasts Insurance Industry (relating to Superstorm Sandy)--November 15, 2012
AAJ report: Do As I Say, Not As I Sue: Exposing the Lawsuit-Happy Hypocrites of the U.S. Chamber's Institute for Legal Reform (includes State Farm)--October 2011
- Read the article: U.S. Chamber Hypocrisy on Lawsuit Abuse (2011)
The Insurance Hoax--in Bloomberg News (2007)
Is the State Farm Policy Really Worth Anything? (2009)
AAJ report: Tricks of the Trade--How Insurance Companies Deny, Delay, Confuse and Refuse
AAJ report: The Ten Worst Insurance Companies in America
The 10 Worst Insurance Companies in America for Homeowner Coverage--by Policyholders of America (2008)
Conseco: Count Up to the Ten Worst Insurance Companies and the Games They Love to Play (2013)
Is There a Chink in the Stonewall? How to Sue the Insurance Company that is Blocking Settlement
Allstate Insurance Company Claims Manual (1995)
Case Against State Farm Proves Agents Receive Same Mistreatment as Regular Folks
State Farm's Arrogance Prompts Legislative Outcry (2010)
Denise Bryan vs State Farm--Court of Special Appeals of Maryland (2009)
Allstate, State Farm, Other Bad Faith Insurance Companies Rack Up Record Profits by Cheating Customers (2007)
Study Finds Institutional Bad Faith at Allstate, State Farm and Other Major Insurers (2008)
Allstate:
Are You in Good Hands? (2008)
Do State Farm Customers Really Hate State Farm as Much as State Farm's Attorneys Publicly Argue They Do?
(The answer is Yes.) (2009)
Coastal Insurance Crisis--State Farm cooking the books (2009)
Insurance Company Tactics Add to Americans' Financial Hardships (2008)
State Farm Stiff Arms Texas Regulators (2010)
"State Farm is the poster child for what's wrong with the system," said Alex Winslow of Texas Watch.
The Claims Game: When Insurers Just Won't Pay (2001)
NAIC Cites Top Insurance Complaints (2008)
State Farm's Corporate Irresponsibility (2009)
Coach Barry Switzer vs State Farm--mold claim (2005)
Allstate:
Washington Appeals Court Says Allstate Must Reveal Claims Documents (2009)
Gitty Up! The Research that Fooled America (2009)
First Enron, Now State Farm--about insurance industry influence over the political process
(2002)
Insurers Maintain Record Profits by Overpricing Policies and Underpaying Claims (2007)
Court Rulings and other documents in State Farm cases:
Campbell vs State Farm--U.S. Supreme Court heard oral arguments (2002)
Campbell vs State Farm--Utah Supreme Court ruling (2003)
State Farm dragged the Campbell family through the legal system for 23 years.
Safeco: Victims of Insurer's Bad Faith to Get Big Award (2012)
Oklahoma Couple Awarded $13 Million in Lawsuit Against State Farm (2006)--Watkins vs State Farm (David Jones represented State Farm)
State Farm former employee--declaration of Amy Girod Zuniga (gives details of State Farm's bad faith behavior) (1996)
Deposition of State Farm Claims Vice President Susan Hood (2006)--Watkins vs Oklahoma (David Jones represented State Farm)
Allstate: Judge Finds Insurer Guilty of Bad Faith (2014)
State Farm vs Deutsch--US District Court, Eastern District of Louisiana
(David Jones is one of the defense attorneys representing State Farm)
(2009)
Insurer (State Farm) Fails to Dismiss Bad Faith Count on Summary Judgment (2008)
State Farm vs McIntosh--US District Court, Southern District of Mississippi, Plaintiffs' Evidence of Out-of-State Conduct (against State Farm) (2008)
State Farm vs McIntosh--Deposition of Mississippi Deputy Insurance Commissioner, David Lee Harrell (2007)
In Search of Consistency: Discovery of Reserves and Other Policyholders’ Claims Files (2007)
Illegal activities by bad faith insurance companies:
Allstate and State Farm Hit With Racketeering Charges (2008)
State Farm Found Guilty of Fraudulent Claims Conduct in Rigsby Qui Tam Case (2013)
Janet Fischer--RICO (racketeering) lawsuit against United States, State Farm and several parties including David Jones' law firm (David V Jones, formerly with Jones, Kurth & Andrews in San Antonio, Texas; he joined Akerman law firm in 2007)
Federal Jury Finds State Farm Guilty of Fraud Against the Federal Government (2013)
State Farm Ordered to Pay Fees and Damages in Katrina Whistleblower Case (2014)
Farmers Insurance: Jury Finds Farmers Insurance Guilty of Fraud (2011)
State Farm Faces Criminal Investigation Over Hurricane Claims (2012)
Mississippi Congressman Gene Taylor Calls for Federal Probe Into Insurers' Katrina Practices (2007)
Congressman Gene Taylor's Report to Congress about Insurance Company Fraud after Hurricane Katrina (2007)
Two Hartford Insurance Execs Admit Taking Bribes from Houston Lawyer (2010)
Insurers Colluded to Reduce Payments for Hurricane Damages (2007)
Prostitution, Drugs, Payola, and More in the Insurance Industry (2007)
Channel 7 & KGO Investigation Into How State Farm Does Business (Parts 1 & 2) Windows Media Video. Tuesday, November 07, 2006. Investigation into the way State Farm does business: State Farm cheats policyholders by forging signatures to deny coverage and orders employees to lie under oath in bad faith litigation. (17 min.) Contact us for a copy of the video.
Channel 7 & KGO Investigation Into How State Farm Does Business (Part 3) Windows Media Video. Monday, November 06, 2006. Investigation into the way State Farm does business: Employees instructed to destroy documents that could be used against them and the use of "mad dog" litigation tactics in bad faith lawsuits. (5 min.) Contact us for a copy of the video.
Insurance Company Surveillance Tactics:
Insurance Company Ordered to Pay Damages for Illicit Surveillance and Flaunting the Court's Rulings (2008)
Uncovering the Secrets of Insurance Company Surveillance (2012)
Hartford Insurance: Video Surveillance Trips Up Insurer--Pennsylvania Court Ruling (2007)
What to Do When Disability Insurance Companies Use Surveillance Evidence Against You (2017)
Insurance Company Influence in the Legislative and Judicial System:
Justice for Sale--in the Wall Street Journal (2008)
Buy Your Own Judge (2010)
Change Way Judicial Races are Financed (2009)
Supreme Court Elections: Donations vs Impartiality on Docket (2009)
In Justice Shift, Corporate Deals Replace Trials (2008)
Insurers Contributed $35.7 Million to Members of Congress since 2005
State Supreme Court Justice at Center of State Farm Lawsuit (2011)
State Farm Customers Want Illinois Supreme Court to Restore Verdict in Fraud Suit (2011)