Posted On August 18, 2010 In Legal Information
A famous United States Supreme Court case demonstrates the difficulties that people can have in dealing with insurance companies. In State Farm v. Campbell, Campbell caused a car accident that killed one person and permanently disabled another. State Farm was his automobile insurance carrier. Despite offers to settle from the family of the people Campbell injured, State Farm refused to settle for the policy limit of $50,000.
The company ignored its investigators’ advice and took the case to trial. Campbell had considered getting his own lawyer, but State Farm assured him that it would defend his best interests and that he would have no liability. At trial, Campbell ending up losing and the jury returned a judgment of nearly $200,000. State Farm at first refused to cover the amount over the $50,000 policy limit. A State Farm lawyer told Campbell he might want to put up “for sale” signs on his house to get things going.
Campbell consequently joined the victims’ family and sued State Farm for its bad faith acts. A Utah state jury awarded Campbell and the others $2.6 million in compensatory damages and $145 million in punitive damages. The US Supreme Court described the insurance company’s conduct as “reprehensible”. A Lufkin injury lawyer can help you fight for your rights if you have had difficulties with an insurance company following an accident or claim.