State Farm Slapped With $14.5M Defamation Verdict

Law360, New York (July 1, 2011, 5:55 PM EDT) -- An Indiana jury on Thursday ordered State Farm Fire and Casualty Co. to pay $14.5 million to a construction company it had accused of criminal insurance fraud.

State Farm had sued Joseph Radcliff and his company, CPM Construction of Indiana, in 2008, saying that Radcliff committed insurance fraud and violated the Racketeer Influenced and Corrupt Organizations Act by intentionally damaging rooftops and submitting false claims for wind and hail damage.

But after a six-week trial in Hamilton County, Ind., a jury turned the tables on the...
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