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For Immediate Release - Jan. 20, 2000
Judge says Allstate used illegal tactics with
consumers Seattle Injured citizens who settled auto insurance claims
with Allstate Insurance Company may have been cheated out of thousands
of dollars in just compensation for their injuries. King County Superior
Court Judge Phillip Hubbard ruled late last week that Allstate
"engaged in the unauthorized, negligent practice of law and
breached its fiduciary duties" to the plaintiffs.
Hubbard also concluded, that
"Allstate is liable for any legally recoverable
damages" caused by its illegal scheme.
Janet Rice, president of the Washington State Trial
Lawyers Association (WSTLA), said Allstate adjusters were portraying
themselves as legal representatives for auto accident victims trying to
settle claims against its policy holders.
She said WSTLA encourages consumers who may have settled claims
with Allstate in the past five years to immediately contact an attorney.
You may be entitled to recover damages for lost compensation
"We think it's likely that Allstate has
defrauded thousands of citizens out of fair settlements for their
injuries. In this illegal
scheme of deception, they were essentially attempting to represent both
parties on an auto accident claim." Lawyers familiar with the case
say Washington is the first state in the nation to hold Allstate
accountable for its scheme to bilk injured citizens largely because the
evidence compiled against Allstate in the Seattle case was overwhelming.
Seattle attorney John Budlong filed the case against Allstate on behalf
of Janet Jones, a 42-year-old Des Moines resident.
She was severely injured in an automobile accident when a
17-year-old high school student ran a stop sign and crashed into her
1992 Plymouth Voyager Minivan. Budlong
has declined to comment on the ruling due to pending litigation related
to this case. While there are more than 50 similar lawsuits filed
against Allstate nationwide, the Jones case presented Hubbard with
several important pieces of evidence.
Budlong presented internal claims manuals which directed
adjusters to contact accident victims and portray themselves as
representatives for the claims process.
Allstate routinely sends accident victims a letter promising a
"Quality Service Pledge."
They also provide victims with a brochure which states that
claimants "do not need attorneys to receive fair treatment or a
fair settlement."
By intercepting attempts to retain an attorney,
accident victims may have been victimized by Allstate adjusters who
duped them into accepting unfair offers of settlement.
Allstate adjusters advised the Jones family throughout the entire
claims settlement process, even contacting her as she recovered from her
injuries in the hospital. The
impact of the crash hurled Jones's minivan onto its side.
A defective seatbelt caused her to be partially ejected from the
van. She sustained severe
head and facial injuries, including the loss of an eye.
The medical expenses from her initial hospital stay grew to more
than$75,000, exceeding the $25,000
liability limit on the teenager's Allstate policy.
Three days after the accident, Allstate claims adjusters
contacted Jones with a form letter promoting its "Quality Service
Pledge." Allstate said
it would serve as Jones's claims representative for the accident.
Allstate's claims adjusters continued to contact Jones and asked
the Jones family to "trust" Allstate and reaffirmed the
company's commitment to make an "appropriate offer of
compensation" for her injuries.
However, Allstate adjusters cautioned the Jones family that
Allstate would not continue to represent them in the claims process if
they retained an attorney. Bellevue
attorney Karen Greig, a former insurance defense attorney, who has
fought many cases against Allstate, says she hopes the ruling will
accomplish two things. "Hopefully consumers will carefully consider
their auto insurance carriers when they hear about this case.
And secondly, maybe Allstate will start treating injured citizens
fairly," she said. "The law has finally caught up with
Allstate and its dirty tactics. "It's
time for the good-hands people to wash up." |