Why You Need an Attorney: Campbell v. State Farm

A Utah Court found State Farm guilty of committing nationwide fraud and misrepresentation during its handling of claims. In Campbell v. State Farm, the decision noted State Farm's instructions to an investigator to "change his report" to include erroneous information making it appear their insured was not at fault.  Evidence of State Farm's "Performance, Planning & Review" Policy which met corporate financial goals by capping claims payouts was admitted in Campbell's bad faith suit against the insurer.  $145 million dollars in punitive damages were awarded against State Farm.  State Farm set monthly payment caps and rewarded adjusters who paid less than market value for claims.  State Farm agents changed the contents of files, lied to customers, and committed other dishonest and fraudulent acts in order to meet financial goals. 65 P. 3d 1134,1148 (Utah, 2001).  In particular, these fraudulent practices were consistently directed at persons - poor, racial or ethnic minorities, women, and elderly individuals - who State Farm believed would be less likely to object or take legal action. Id. State Farm then destroyed and concealed documents related to this profit scheme.  While State Farm appealed the award of large punitive damages, the U.S. Supreme Court found their behavior dishonest and reprehensible.

Please click the link above to view a more detailed article discussing the Campbell v. State Farm case.

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