Thursday, August 27, 2009

Farmers Insurance offers $5,000+ for Bad Faith

In 2000, an employee of Menards drove a truck into the home of Edley and Lurline Stewart, causing property damage and personal injuries.

The Stewarts had homeowners and automobile insurance through Farmers Insurance Group. Farmers tendered the Stewarts $805.97 as settlement of their personal property claims, but the Stewarts returned it as unreasonable.

The Stewarts then filed suit against both Menards and Farmers. They settled with Menards for $57,000, reserving the right to pursue more damages against Farmers.

An arbitrator found that, except for the $805.97 previously tendered, the Stewarts’ property damage claim against Farmers was barred by the statute of limitations; and that they were entitled to nothing for personal injury because their damages did not exceed $57,000.

The bad faith claim remained, however. Farmers made an offer of judgment of $5,000, plus taxable costs, which the Stewarts accepted.


Stewart v. Farmers Insurance Group

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