Court Affirms $16.3M Allstate Judgment

KANSAS CITY, Mo. (CN) - The Missouri Court of Appeals upheld a judgment against Allstate Insurance Co. for $16.3 million.

The driver and victims in a serious car accident teamed up to sue Allstate for bad faith refusal to settle, and Judge Spinden agreed with the trial court that their claims had merit.

Allstate failed to recognize the severity of the victims' injuries, as well as the probability that the claim would exceed the limits of the driver's policy, Spinden ruled.

In addition, Spinden found that Allstate failed to follow its manual for handling claims in good faith.

Also, Allstate did not properly appeal the punitive damage award of $10.5 million on the allowable bases of jury bias and prejudice.

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