State Farm Can't Escape Fire-Loss Underpayment Action

Law360, New York (October 8, 2013, 4:39 PM EDT) -- State Farm Fire and Casualty Co. must face a proposed class action alleging it suckered fire loss policyholders by covertly reimbursing only the present cash value of damaged properties, instead of the full cost of reconstruction, a Missouri federal judge ruled Tuesday.

Chief U.S. District Judge Fernando J. Gaitan Jr. rejected State Farm’s bid to dismiss the claims for breach of contract and vexacious refusal to pay brought by plaintiff Jared Wingo, who said he faced repair costs of $119,400 after his home was damaged in...
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