Geico Can't Halt Bad-Faith Claim in UIM Case, Court Says
Geico can't put the brakes on a bad-faith case stemming from underinsured motorist benefits a plaintiff says they are owed as part of a rear-end collision claim, a federal judge has ruled.
September 22, 2017 at 03:20 PM
7 minute read
Geico can't put the brakes on a bad-faith case stemming from underinsured motorist benefits a plaintiff says they are owed as part of a rear-end collision claim, a federal judge has ruled.
U.S. District Judge Matthew Brann of the Middle District of Pennsylvania denied Geico's motion to sever and stay the litigation filed by David Newhouse, who was rear-ended by a truck and injured while driving a rental car.
According to Brann's opinion, Newhouse claimed he was owed the full amount of the UIM coverage offered by the Geico policy, $100,000. Geico evaluated the demand, including Newhouse's claim that he needed surgery as a result of the accident, and offered him $10,000.
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