Fraud verdict against American Family Insurance is reinstated
The Kansas City Star reported on Tuesday that a $17 million dollar verdict against American Family Insurance had been reinstated by the appellate courts. The jury verdict had initially been overturned by a judge who questioned whether the plaintiffs had made a satisfactory proof of their claim that American Family committed fraud by using inferior, nonoriginal equipment to repair insured's damaged vehicles.
The Appellate Court concluded that there was ample evidence in the record to support the claim that American Family was improperly using aftermarket parts which were not of like kind and quality to original equipment manufacturer parts. A similiar case that resulted in a $1.1 billion dollar award against State Farm in 1999 was overturned in 2005 when the Illinois Supreme Court concluded that it had been improperly certified as a class action in 48 states.