Richard Meeks v. Allstate Insurance Company
Published: Feb. 23, 2002 | Result Date: Dec. 19, 2001 | Filing Date: Jan. 1, 1900 |Case number: BC208770 Verdict – $0
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
John T. Brooks
(Sheppard, Mullin, Richter & Hampton LLP)
Facts
The plaintiff, a 69-year-old male, sustained neck, back, hip and knee injuries in a multiple car accident caused by
an uninsured driver. The plaintiff submitted an uninsured motorist claim to his insurer, the defendant. The
plaintiff received medical care from an urgent care doctor, an orthopedic surgeon, his family doctor and two
physical therapists for approximately four months following the injury. The plaintiff then terminated medical
treatment because he believed the treatment had not resolved his complaints of neck pain, and had, in fact,
aggravated his neck condition. Thereafter, he continued on a course of home treatment which included therapy.
Due to his ongoing neck pain, he was not able to sleep in bed with his wife and had to sleep in a recliner.
Approximately one year later, the plaintiff again sought medical treatment due to a continuing pain in his neck.
The pain still did not resolve and according to his physician, the plaintiff will suffer this pain for the remainder
of his life. Prior to the accident, the plaintiff had no neck pain. Based on the medical records, and the results of
an independent medical examination, the defendant determined that the plaintiffÆs accident-related injuries had
resolved within four months after the accident and that the plaintiffÆs ongoing neck pain was unrelated to the
accident.
The defendant offered the plaintiff $3,000 for his pain and suffering. The plaintiff made several settlement
demands culminating in a $25,000 policy limits demand. The claim was submitted to UM arbitration. The
arbitrator found that the plaintiffÆs ongoing neck pain was caused by the accident and awarded the plaintiff
$25,000 plus his medical expenses. The defendant paid the arbitration award and the plaintiff filed a bad action
suit.
The plaintiffs produced evidence which included copies of the defendantÆs manuals and testimony from two
former Allstate employees and claim handling experts. They testified that the defendant had a corporate
scheme designed to increase the defendantÆs profitability by unfairly reducing the amounts paid on automobile
claims, including uninsured motorist claims.
They further testified that the defendant encouraged its adjusters to low ball claims by basing performance
reviews and promotions on the adjustersÆ ability to control loss severities and providing compensation that was
contingent on the amount paid in settlement of claims.
The defendant denied the plaintiffÆs allegations. The defendant contended that its claim
handling procedures are designed to increase customer satisfaction and customer retention by
providing more consistent, prompt and objective handling of automobile claims. The defendant
further contended that it handled the plaintiffÆs claim reasonably and in good faith.
Settlement Discussions
The plaintiff made an initial demand of $1.5 million, later reduced to $285,000 shortly before trial. The defendant submitted a C.C.P. Section 998 offer of $75,000.
Damages
The plaintiff claimed $10,800 in economic damages; $100,000 in emotional distress and $32 million in punitive damages.
Deliberation
three days
Poll
10-2
Length
seven weeks
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