$1.375 Million
Bad Faith vs. State Farm
Case Details
Thomas Law Offices attorneys Tad Thomas and Eric Kiser secured a $1,375,000 settlement with State Farm Mutual Automobile Insurance Company in a bad faith lawsuit in federal court.
The case began after Thomas Law Offices’ client was injured in a collision caused by an underinsured driver in Cincinnati, Ohio. Although State Farm provided the client with underinsured motorist (UIM) coverage, the company initially denied the claim outright, offering nothing to resolve it despite a clear liability picture. Throughout the underlying litigation, State Farm never offered an appropriate value to resolve the UIM claim before trial. Tad and Eric took the UIM claim to trial, and a jury awarded their client $450,000.
Following the verdict, Thomas Law Offices pursued a separate claim against State Farm for bad faith, alleging the company violated Kentucky’s Unfair Claims Settlement Practices Act and Consumer Protection Act by failing to reasonably investigate the claim, failing to respond promptly, and refusing to offer a fair settlement despite reasonably clear liability. The case was removed to the United States District Court for the Eastern District of Kentucky. After mediation, State Farm agreed to pay $1,375,000 to resolve the bad faith claim, holding the insurer accountable for how it treated its own policyholder in the claims handling process.
