Full Article —https://www.luveralawfirm.com/case/holding-nationwide-accountable-for-egregious-bad-faith/
A Spokane County judge and jury awarded over $103 million in judgments against Nationwide Insurance for its egregious mishandling of claims following a tragic car accident that killed three children. The plaintiff, a grieving mother, had faithfully paid premiums to Nationwide, expecting support after the accident, but instead faced delayed claims, unpaid hospital bills, and legal obstacles.
In 2017, the plaintiff and her family were involved in a car crash during a road trip. The mother missed a stop sign, resulting in a collision that killed her children and severely injured her and her husband. Although Nationwide was responsible for covering hospital bills and other no-fault benefits, the company failed to do so. Instead, it forced the grieving family to resort to crowdsourcing to cover the children’s burial costs and allowed their medical bills to go to collections.
Rather than promptly resolving the claims, Nationwide delayed the process for two years, ultimately forcing the plaintiff’s husband to sue her to obtain the benefits owed under their policy. This legal maneuver put additional emotional strain on the family. The company then hired 29 attorneys and four law firms to defend itself, while the plaintiff had just three attorneys and a paralegal.
In response to Nationwide’s actions, the jury awarded the plaintiff $27 million in damages and imposed an additional $47 million in punitive damages to punish the company and deter future misconduct. Superior Court Judge Annette S. Plese, who has served for over 20 years, further enhanced the jury’s award by $20 million under Washington’s Insurance Fair Conduct Act (IFCA), emphasizing the severity of Nationwide’s misconduct.
Nationwide’s defense claimed that its actions were either proper or minor mistakes, but the court found them in violation of insurance bad-faith and consumer protection laws. Importantly, the company is legally barred from passing these costs onto its policyholders, ensuring that consumers are protected from rate hikes resulting from Nationwide’s legal penalties.
David Beninger of Luvera Law Firm, representing the plaintiff, highlighted the significance of this case in holding insurance companies accountable for unfair practices. The verdict sends a clear message to Nationwide and other insurers to honor their commitments. The family plans to use the money from the case to support an educational foundation they established in memory of their children.