INDUSTRY NEWS

Source: Merlin Law Group

On February 26, 2019, the Washington Supreme Court heard arguments in Keodalah v. Allstate Insurance Company, et al..¹ The insured, Keodalah, suffered catastrophic injuries when his truck was struck by a motorcycle. Keodalah sought the full $25,000 limit of his underinsured motorist coverage with Allstate but the company instead offered to settle for a smaller amount, claiming he had been partially at fault.

Keodalah filed suit against Allstate. In the litigation, the insurance adjuster assigned testified that Keodalah was talking on his cellphone and ran a stop sign. However, the police had determined he was not using his phone and that Allstate’s own accident reconstructionist had determined that he had stopped at the sign. The adjuster later admitted that both reports were true, according to court documents. The jury found that the motorcyclist was solely at fault and awarded Keodalah and his wife more than $100,000.00.

Keodalah then filed a bad faith lawsuit against Allstate and the insurance adjuster individually, claiming violations of the CPA. The trial court dismissed the claims against the adjuster, and Keodalah appealed.

In March of last year, a state appellate court overruled the trial court’s decision² and found that Keodalah could file an individual bad faith claim against the adjuster, saying that the relevant state law makes no distinction between corporations and individuals. The case is now before the Washington Supreme Court.

Select the link below to hear oral arguments: Moun Keodalah & Aung Keodalah v. Allstate Insurance Company, Tracey Smith & John Doe Smith