A man severely injured in a car accident has settled with Allstate Insurance for $22 million after the company rejected his $250,000 insurance claim. The settlement is reportedly the largest bad faith verdict ever obtained in Pennsylvania.
In 2009, the plaintiff, who was then 24 years old, was a passenger in his friend's car when they rear-ended another vehicle. The plaintiff got out of the car, which had been disabled, to help push it to the side of the road. He was then hit by a third vehicle, which pinned him to his friend's car. The man's leg was crushed and eventually had to be amputated above the knee.
The driver who hit him was uninsured, so the plaintiff filed a claim against his friend's Allstate car insurance policy for $250,000. The company rejected the claim. The plaintiff, who lives in Feasterville, Pennsylvania, then sued Allstate and offered to settle for $250,000, but the insurer again refused to pay. The case went to trial, and a Philadelphia jury award the man $19.1 million, but Allstate still would not pay, upon appeal, the verdict was upheld and the figure was changed to a $22 million settlement because of additional fees attached to the original judgment.
People purchase insurance to cover them in their times of need, such as after a car accident injury. When an insurance company unexpectedly denies a legitimate policy claim, it can add frustration and financial hardship to an already difficult time. If a person is injured in a car accident, they may wish to consult with an attorney to help them evaluate their legal options. A lawyer with experience in personal injury claims may be able to help a car accident victim receive all the insurance benefits available to them.
Source: The Pennsylvania Record, "Bad faith settlement with Allstate awards $22 million to accident victim", Jim Boyle, October 02, 2014