Class Action Lawsuits Against State Farm insurance
Class action lawsuits against State Farm insurance companies are one of the most common kinds of consumer litigation. Lead plaintiff’s alleged in a class action complaint that State Farm purposely colluded with the Illinois State Supreme Court justice to overturn a $1.5 billion jury verdict against the insurer in a consumer product liability class action suit. The complaint also alleged that State Farm violated state and federal laws by failing to warn of an impending class-action suit.
State Farm vigorously denied the accusations and claimed they were unable to locate the plaintiff or his class at all. The court found the complaint adequately detailed and the claims reasonable. In a unanimous opinion, the court found that class actions against businesses in general, and the insurance industry in particular, were extremely difficult to defend. State Farm was a member of the National Automobile Dealers Association, which allowed it to claim ignorance as a defense.
The lead plaintiff, Richard Tise, was awarded damages from State Farm for injuries sustained in a truck accident. According to the complaint, Tise was involved in an accident in January of 1999 that resulted in serious injuries. Tise received permanent damage to his left arm and leg and suffered permanent disfigurement, loss of use of the arm and leg, physical impairment and emotional distress.
According to the complaint, State Farm did not warn drivers of an impending class-action suit. State Farm employees who had been instructed to tell clients of a pending class action suit were instructed to refer the information to an attorney, despite their lack of knowledge on the subject. The lawsuit stated that the information was not provided because State Farm was a member of the National Automobile Dealers Association, and that the car accident claim was a frivolous matter intended to harass State Farm.
Class actions against businesses can be quite difficult to defend. Many plaintiffs are required to prove that the defendant has engaged in conduct in furtherance of its business as a matter of law in order to recover damages. Class action lawsuits against businesses and other institutions can be hard to prove, especially where plaintiffs must prove that the defendant actually committed the alleged wrong, such as intentionally selling defective products.
Class actions against companies like State Farm Insurance are often a complex issue. Attorneys must present evidence of how the defendant violated state and federal laws, how it intentionally withheld information from consumers, and how it colluded with the state’s supreme court to violate the plaintiff’s rights.
Although a class-action lawsuit is typically brought after a policyholder or consumer files a claim, it is possible to bring a lawsuit in other cases, as long as the facts and circumstances fall under the umbrella of the class. For example, if the defendant knowingly or negligently caused harm, State Farm could be liable even though no injury was sustained before the filing of the complaint. Many plaintiffs are injured or killed due to defective products manufactured by State Farm Insurance, which could not have existed prior to the filing of the lawsuit. It is also possible to bring a lawsuit for breach of warranty.
Whether or not a lawsuit will be successful is dependent upon several factors. If the claim is frivolous or if the plaintiff does not provide sufficient proof of the alleged wrongful conduct, a lawsuit can be dismissed. Even if the facts are true, it may take years for a lawsuit to be successful, especially in a class-action case.
Some plaintiffs may be able to obtain financial compensation for medical expenses, lost wages, or pain and suffering from a lawsuit. Other plaintiffs may be able to recover the amount of their premium payments and/or deductibles, but these awards are typically less than what they would receive from a lawsuit.
An individual lawsuit, such as this one, is difficult to defend. In many instances, attorneys who file class action suits against companies must show that the specific defendant breached a state or federal law, that the defendant deliberately withheld information from consumers, or that it colluded with the state’s supreme court to prevent plaintiffs from pursuing claims based on facts.
State Farm is a popular brand for car insurance and homeowner’s policies. The company has received widespread negative press over the years because of the number of claims it has settled in the past.