8.6 Million Dollar Verdict Against State Farm

Representing Orlando, Tampa, Miami and Nearby Areas of Florida

According to The Consumerist, a consumer advice website, State Farm is not such a good neighbor to its customers. Recently, in Kansas, a jury returned a verdict of 8.6 million dollars for malicious prosecution and intentional infliction of emotional distress against State Farm and in favor of their customer, Jeannie Hampton. It all started when Ms. Hamptons Toyota was stolen and later found burned to a total loss on a rural road.

Two separate law enforcement authorities investigated and concluded that Ms. Hampton was not involved in the arson and theft. And what did the good neighbor do? They not only refused to pay for the Toyota, but they conducted their own internal investigation and concluded that Ms. Hampton was guilty of insurance fraud. They then threatened her with criminal prosecution when she filed her lawsuit for breach of contract. State Farm turned over its investigative information to the National Insurance Crime Bureau who convinced prosecutors to bring criminal charges of insurance fraud, a felony, against Ms. Hampton. Later, it was determined that the information provided to the NICB was a bit tainted. State Farm had threatened one witness to solicit perjury, concealed and disregarded exculpatory evidence, and directed the conclusions of their mechanical expert. In the criminal trial, Ms. Hampton was acquitted.

Ms. Hampton then proceed to trial on her breach of contract claim and also brought suit for malicious prosecution and intentional infliction of emotional distress. Including punitive damages, the verdict in their favor in the civil case was over 8.6 Million dollars.