Washington State Trial Lawyers Association
Contact: Sue Evans (360) 786-9100
For Immediate Release - May 10, 2002
OLYMPIA - In a case of national importance, the Washington
State Supreme Court ruled 5-4 Thursday that Allstate Insurance Company
committed legal malpractice by advising a woman who was injured by one of its
policyholders that she should accept Allstate's disadvantageous settlement
offer.
"This is a resounding victory for people who have been unfairly treated
by Allstate's deceptive auto accident settlements," said Edmonds attorney
John Budlong, who represented the injured woman Janet Jones.
"The Supreme Court has ruled that Allstate must now pay the price for
giving bad legal advice to accident victims who did not have a lawyer.
Allstate falsely told the Joneses and thousands of other accident victims that
it would be their claim representative. Then it advised them to agree to
lowball settlements that only benefited Allstate. The Supreme Court said
Allstate's bad settlement advice was based on a conflict of interest and legal
malpractice. Its ruling allows Janet Jones and other injured people o sue
Allstate to overturn the bogus settlements and obtain decent justice."
There have been more than 50 similar lawsuits filed against Allstate for its
claims practices nationwide. The Washington Supreme Court ruling upheld an
earlier King County superior court ruling, which held Allstate liable for
damages for the conduct of its adjusters. It was the first court in the
country to do so.
The Washington Supreme Court concurred on Thursday. "We hold that
the actions of the claims adjuster in this instance constituted the practice
of law," wrote Justice Bobbie Bridge. "Therefore, to safeguard
the public interest, we hold that insurance claims adjusters, when preparing
and completing documents which affect the legal rights of (accident victims)
and when advising (accident victims) to sign such documents, must comply with
the standard of care of a practicing attorney."
Allstate adjusters advised the Jones family throughout the entire claims
settlement process, even contacting her as she recovered from her injuries in
the hospital.
Budlong has presented into evidence Allstate company manuals which direct
claims adjusters to bilk injured citizens. Adjusters are trained to contact
accident victims and portray themselves as representatives for the claims
process. The company routinely sends accident victims a letter promising a
"Quality Service Pledge." They also provide victims with a brochure
telling claimants they "do not need attorneys to receive fair treatment
or a fair settlement."
Janet Jones was severely injured on Nov. 21, 1997 when a teenager ran a stop
sign and smashed into the side of her 1992 Plymouth Voyager. The impact if the
crash hurled Jones's minivan onto its side. A defective seatbelt caused her to
be partially ejected from the van. She sustained severe head and facial
injuries, including the loss of an eye. The medical expenses from her initial
hospital stay grew to more than $75,000 - exceeding the $25,000 liability
limit on the teenager's Allstate policy.
Three days after the accident, Allstate claims adjusters contacted Jones with
a form letter promoting its "Quality Service Pledge." Allstate said
it would serve as Jones's claims representative for the accident. Allstate's
claims adjusters continued to contact Jones and asked the Jones family to
"trust" Allstate and reaffirmed the company's commitment to make an
"appropriate offer of compensation" for her injuries. However,
Allstate adjusters cautioned the Jones family that Allstate would not continue
to represent them in the claims process if they retained an attorney.
Sue Evans WSTLA Communications
(360) 786-9100 (360) 250-0394 -- Mobile
www.consumerrights.net
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