State Farm Policy Fight Will Stay In Ill. Federal Court

Law360 (March 25, 2020, 4:31 PM EDT) -- Two proposed classes of State Farm policyholders who say the insurance company fails to respond to personal injury protection claim submissions within its 30-day statutory deadline won’t be able to hash their claims out in state court, an Illinois federal judge has said.

Although the policyholders are only seeking declaratory or injunctive relief, Illinois-based State Farm Mutual Automobile Insurance Co. has proven that enough money is in controversy to trigger the Class Action Fairness Act’s $5 million threshold for federal jurisdiction, U.S. District Judge Robert Dow Jr. said Tuesday.

Plaintiffs Mark Anderson, Laverne Gallant and Cynthia Olive say the insurer’s failure...

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