Facts

On March 30, 2004, Spencer Stecz purchased 2004 Chevy Blazer Xtreme. State Farm issued Stecz an Automobile Liability Policy for the vehicle. The policy contained a "fraud or concealement" provision which states that ther is no coverage if the insured made false statements with the intent to conceal or misrepresent any material fact or circumstance in connection with any claim under the policy. Several months later, Stecz reported to the police and State Farm that his vehicle was stolen. The vehicle was recovered a few weeks later in a nearby city.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that State Farm breached the insurance contract and breached the implied covenant of good faith and fair dealing by failing to pay his claim.

DEFENDANT'S CONTENTIONS:
State Farm contended that it was excused from paying the claim because Stecz violated the fraud and concealment provision of the policy. State Farm's forensic expert, Dan Kern, inspected the vehicle and found no physical evidence of forced entry to the door, windows or ignition lock. Stecz submitted a police report, affidavit of theft, a recorded statement and a statement under oath. All of these statements revealed a number of inconsistencies regarding Stecz' whereabouts before, during and after he reported the vehicle was missing. As a result of these inconsistencies, false statements, concealment of information and Kern's expert findings, State Farm concluded that Stecz violated the fraud and concealment provision of his policy.

Damages

Stecz claimed vehicle and loss of use damages.

Result

The jury determined that State Farm proved both of its contract affirmative defenses of false statements and concealment of material facts.

Other Information

Prior to trial, State Farm prevailed on its Motion for Summary Judgment on the Breach of Implied Covenant of Good Faith and Fair Dealing and punitive damages claims by demonstrating the handling of the claim was reasonable, and that a genuine dispute existed as to its coverage liability, as a matter of law.

Deliberation

two hours

Poll

7-0 on State Farm's affirmative defenses

Length

three days