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Sitton v. State Farm Mut. Auto. Ins. Co.

(2003) Insureds of State Farm brought a class action against State Farm to recover for breach of contract and fiduciary duty, bad faith, violation of the Consumer Protection Act, and unjust enrichment by denying or limiting claims for personal injury protection (PIP) benefits after medical utilization review. The trial court certified the class and bifurcated trial. Discretionary review was granted by the Court of Appeals. The Court of Appeals held that: (1) the class action was properly certified on the ground that common questions of fact or law predominated, and a class action was superior; (2) the plan for bifurcated trial violated due process by allowing the jury to make a damages award without requiring individual claimants to establish causation and damages or providing the insurer the opportunity to show a reasonable justification for denying individual claims; and (3) bifurcated trial would not violate insurer’s right to a jury trial.

For information on the Equifax Class Action Lawsuit, please click here.
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