State Farm to pay $40,000 for breach of contract

July 8, 2014
Following a shop lawsuit, State Farm has been ordered by a Georgia state court to pay a policyholder more than $40,000 — $30,000 of which was for attorney’s fees — for breach of contract and acting in bad faith.
Stemming from their complaint of State Farm Insurance, the country’s largest private automobile insurer’s denial and failure to provide for necessary collision repair procedures and materials, a Georgia state court has ordered State Farm to pay their policyholder $40,508 — $30,000 of which was for attorney’s fees — after a jury found the insurer had breached its contract and acted in bad faith with their policyholder.

The suit stemmed from the insurer’s denials and under payment of approximately $4,000.00 in the costs for repairs being performed by Hernandez Collision Center in Savannah, Ga.; the shop was a witness in the case. The judgment included $5,508 for breach of contract, $5,000 as a bad faith penalty and $30,000 in attorney's fees for a total verdict of $40,508.00.

“It is refreshing to see the results in this case and know that a jury of our peers awarded Mrs. Roberts for the hardship caused by her insurer,” stated April Hernandez, AAM of Hernandez Collision. “While Hernandez Collision Center gladly works with all insurers, our responsibility is to our customers to ensure all damages to their vehicle is repaired properly and thoroughly. We feel it is also our professional responsibility and moral obligation to help customers like Mrs. Roberts when they are treated unfairly. We congratulate Mrs. Roberts on her courage and conviction and are thankful that we could help her in this endeavor.

After the court’s ruling, Mrs. Roberts stated, “"When you know you are right, don't let someone take advantage of you just because they are a large company. Always stand up for what you believe."

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