In the News
Article from the St. Louis Post-Dispatch (Tuesday, July 31, 2001)Man wins judgment of $3 million against insurance company*
By Robert Goodrich (Post-Dispatch)
An insurance company that balked at paying a $9,500 claim for a Belleville man's stolen pickup was hit with a $3 million jury judgment Monday.
Warrior Insurance Group Inc. of Bedford Park, Ill., habitually balked at paying, according to the plaintiff's lawyer, Chris Kolker of Belleville. The company gave employees incentives and bonuses for rejecting valid claims.
Employees testified in the trial that they got their own vehicle insurance elsewhere.
The company, which also does business as Valor Insurance Co. and Gallant Insurance Co., targeted Robert L. Baron Jr. of Marissa. His 1992 Nissan pickup was stolen on March 25, 1998, and burned.
Kolker said a company employee had pretended to be a police officer and threatened Baron with prosecution, accusing him of filing a fraudulent claim.
The company dragged its feet for almost three years on a previous claim for $1,600 in damage caused by a deer that ran in front of the truck, Kolker said.
Kolker told the jury that his client had vowed to take a stand, based on the principle that, "Corporations are not above the law."
That was the message he urged the jury to send. He recommended a verdict of up to $6 million.
After about two hours of deliberation, the jury in circuit court in Belleville reached a verdict ordering payment of $35,000 in compensation, plus $3 million in punitive damages.
The company is expected to appeal. It had admitted liability, but defense attorney Robert J. Bassett urged jurors to use "perspective and context." This was not a case involving death or physical injury, he reminded them.
Bassett said Baron's claim for deer damage "kind of fell through the cracks" but was eventually paid in full.
He suggested that jurors consider ordering payment for the truck and a refund of Baron's insurance premiums totaling $4,000 to $5,000.
But Kolker said the Illinois Department of Insurance had already levied a $50,000 penalty against the company for its claims practices, and improper practices continued. "A message needs to be sent," he said.
Baron's suit included a defamation count, alleging that one of the insurance company's employees had told his banker that his claim was fraudulent. Bassett said there was no proof of damage to Baron's reputation.
The suit said company employees had tried to coerce Baron into filing false documents and threatened him with prosecution if he did not withdraw his claim. It said the company also had tried to collect improper storage fees.
Employees claimed they didn't have to pay for stolen vehicles if there was no evidence of forced entry or tampering with the ignition, the suit said.
The action also states that claims involving stolen vehicles were commonly rejected as "unresolved" or involving an "unscheduled driver."
Court officials said at least two other cases are pending against the company in St. Clair County.
Reporter: Robert Goodrich
E-mail: rgoodrich@post-dispatch.com
Phone: 618-235-8919