Christina Spicer  |  October 16, 2018

Category: Consumer News

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State Farm policyholders have reportedly been able to secure an $18.5 million settlement in a class action lawsuit alleging the insurance provider wrongfully denies personal injury claims.

Lead plaintiff Brett Durant claims that State Farm denied coverage to approximately 3,000 policyholders over determinations that they had reached “maximum medical improvement.”

Durant says the insurance giant ended his Personal Injury Protection (PIP) coverage before his injuries had been resolved.

Under the terms of the State Farm class action settlement, policyholders whose coverage was ended after it was determined they had reached “maximum medical improvement” can claim the value of their denied claims along with interest.

“Taking into account the risks of surviving summary judgment and decertification motions and in proving liability and damages at trial, the proposed $18,500,000.00 settlement is an exceptional result for the class,” noted the motion for preliminary approval of the State Farm PIP class action lawsuit settlement.

Class Members include Washington residents who had their claim or claims for PIP coverage denied or limited by State Farm between April 9, 2008 and June 15, 2018.

The claim must have been dropped because the insurance company determined that they had reached “maximum medical improvement.”

Per the State Farm class action settlement, Class Member claims will be determined using a “distribution formula” that will take into account each Class Member’s denied claims in relation to the settlement award.

According to the 2014 class action lawsuit, State Farm improperly denied policyholders claims under the PIP terms of their insurance policy.

The plaintiff alleged that his and other State Farm PIP policyholders were entitled to “reasonable medical expenses” within three years of a covered accident.

However, State Farm often denied, dropped, or limited claims based on determinations that policyholders had reached “maximum medical improvement.”

The State Farm insurance class action lawsuit claimed that State Farm’s interpretation of the PIP coverage was in violation of Washington state law.

In March 2017, U.S. District Court Judge Richard A. Jones certified the proposed Class Members in the class action lawsuit, rejecting State Farm’s argument that each policyholder would have unique injuries based on their denied claim.

“The settlement, which was achieved after a comprehensive pre-discovery investigation by Settlement Class Counsel, significant formal discovery, analysis by expert consultants, aggressive motion practice, class certification, an appeal of class certification, resolution of certified questions by the Washington State Supreme Court, and mediator-assisted settlement negotiations, provides a present recovery for the Settlement Class in the face of challenges to any recovery after continued litigation and trial,” states the plaintiff’s motion for preliminary approval of the State Farm class action lawsuit settlement.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Durant and the Class Members are represented by Tyler K. Firkins of Van Siclen Stocks & Firkins and David A. Nauheim of Nauheim Law Office.

The State Farm Personal Injury Protection Wrongful Denial Class Action Lawsuit is Brett Durant v. State Farm Mutual Automobile Insurance Co., Case No. 2:15-cv-01710, in the U.S. District Court for the Western District of Washington.

UPDATE: March 2019, the Washington State Farm personal injury denial class action settlement is now open. Click here to file a claim. 

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9 thoughts onState Farm Will Pay $18.5M to Settle Personal Injury Protection Class Action

  1. tim kidd says:

    When are we getting paid

  2. Ned Reese says:

    I was wondering if I was able to get help from I never asked for it. I was rear ended 11/26/2018?

  3. TH says:

    In Nov 2017 State Farm issued the same PIP MMI letter to me in Michigan even though I had over 80 more auto accident medical appointments in 2018 and I’m still (in 2019) being treated weekly with PT! SF has a very poor reputation in MI and goes unchallenged.

  4. Kimberly A Kuhl says:

    I was rear inded by a speeder duing auturn and injurd and state farm never even helpme I had to fight aruge the other insurence compay said things wernt right mayne agianst the law and neither paid when it wasnt my fault and I had full coverage including medpaywith state farm cigna told me I needed bill s and refused to pay for me to be treated and seen I ended up at chc chyro who didnt do right and really hurt me bad who now gives me records I ask d the state my age only for three visits minus the supporsed to be written in treatment they hurt me and never responde to my calls they and that I was hurt by thier chryos adjustment I am alredy disabled fronm a previous injuries and stress

    1. Ms. Butler says:

      Sounds like my story… I have 2 disc that are messed up.. Was sitting still on interstate hit from behind. Drug me around so many agents to talk to.. But the guy who hit me had state farm too…more confusion. It s a mess..They have never paid my bills.. Denied my PIP no PT my car is messed up the brakes.. He hit me so hard the tracking system is messed up. I had my ft on the brake. I cant stand insurance companys.. Heres another one. I have another car I dont use except I store small tools in it for the kids to mow my yard. They sold me a policy to let my car sit beside my house.. I could believe it. I went to drive the car for which I paid insurance on and was told Oh you cant drive it on the highway….why would I insure a car if I couldnt drive it….Ms. Butler

  5. Trinell Moore says:

    rear ended no medical add me

  6. VERONICA says:

    ADD ME

  7. Michael Chrisman says:

    Add me

  8. Lisa Dotson says:

    What does the class action suit mean for my policy

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