Please fill out the form and we will be in touch with you shortly.
Williams Law Group
137 Public Square
Lebanon, TN 37087
local: 615-444-2900
toll free: 866-820-4457
fax: 615-444-6516
Nashville City Center
511 Union Street, Suite 1850
Nashville, TN 37219
local: 615-313-3999
On Tuesday August 5, 2008, the Missouri Court of Appeals in Kansas City upheld a jury verdict that socked Allstate with more than $16 million in punitive damages.
The verdict stems from a suit in Jackson, County Circuit Court, alleging the insurer had acted in bad faith in settling Edward and Virginia Johnson's claim against one of their insurred drivers.
On March 24, 2000, Wayne Davis Jr. got into his pickup while intoxicated, crossed the center line on U.S. 54 in Camden County and hit a compact car head-on which was occupied by Edward Johnson and his wife, Virginia.
The force of the collision pushed the car back more than 100 feet.
The driver and the passenger, survived but suffered life-threatening injuries. Virginia was hospitalized for 40 days and Edward for 35 days. Their combined hospital bills totaled $320,000.
The Johnsons offered to settle for Davis’ minimal insurance policy limits of $50,000, his carrier, Allstate Insurance Co. After Allstate failed to settle, the Johnsons sued Davis. He consented to a judgment in their favor of more than $5 million — $2.5 million in actual damages, $1.5 million in punitive damages and more than $1 million in prejudgment interest. The Johnsons later sued Allstate for acting in bad faith in settling the claim against Davis.
On Nov. 8, 2006, a jury found that Allstate had acted in bad faith and unanimously awarded compensatory damages of $5.8 million plus 9 percent interest since the date of the judgment to the Johnsons. The jury also hit Allstate with $10.5 million in punitive damages.
Allstate appealed. A three-judge panel of the Missouri Court of Appeals held that the evidence was sufficient to justify the verdict.