Lawyer

State Farm Lawsuits

Why State Farm Cases Are Popular?

State Farm lawsuits are one of the most common types of lawsuits filed in the United States. State Farm is a large auto insurance company with over 17 percent of the overall market share. Started in 1922, it now has 19,500 agents and innumerable policies across both the United States and Canada. Its policy portfolio also includes property and casualty insurance, flood insurance, medical payments, motorist’s liability, homeowner’s liability, and commercial vehicle insurance.

Many people wonder why such big insurance company would file lawsuits or demand class action damages.

State Farm has two explanations for these actions. The first is that the insurance company is performing its duty as an insurer under the law. The second reason is that the lawsuits may be necessary to compel certain changes in company policies and practices that may have a direct bearing on its future financial interests.

State Farm attorneys are among the most aggressively represented lawyers in the nation.

They file hundreds of automobile accident claims and other types of claims for their clients. Most of their claims result in class action settlements. Class action settlements are usually a lot smaller than the actual amount of damages awarded to individuals. Because of this, State Farm and other like-minded lawyers often settle their cases without ever going to trial. In many instances, they settle just before going to trial, allowing State Farm to avoid hefty jury awards.

State Farm is not the only automobile insurance company that seeks class action damages in settling cases.

Many other insurance companies engage in this behavior as well. The reasoning behind this is that if all plaintiffs in a given case go to trial, then each side would try to prove that the other is liable for the ultimate verdict. This would amount to a very long and costly trial. More importantly, the costs of such a trial could greatly outweigh whatever settlement the plaintiffs receive.

In addition to preventing such a lengthy trial, settling your case without trial reduces the likelihood that you will receive an award of excessive verdicts.

Some plaintiffs end up receiving very small awards in compensation. Often, they cannot afford to pay the amounts they receive. When an insurance company settles a case without going to trial, the insurance company is agreeing to accept a lesser verdict in exchange for avoiding potentially high jury awards. Insurance company policy limits also prevent plaintiffs from receiving the maximum amount for their claims. Insurance company policy limits are based on risk and the amount of damages the company believes a certain claim will award.

Another benefit of settling without going to trial is that the defendant does not have to go through the lengthy process of defending their actions.

Once the case has been settled, defendants are generally allowed a period of time to appeal the verdict or to dispute the damages awarded. If the defendant refuses to enter into an agreement to settle their lawsuit before a jury verdict, they face the likelihood of having their case dismissed. A dismissal may occur because the plaintiff was unable to prove that they suffered any damages from the defendant’s conduct. Many plaintiffs who win their cases go on to receive an award that does not cover all their expenses and lost wages, but some settle their claims for less than they might receive if they went to trial.

Leave a Reply

Your email address will not be published. Required fields are marked *