Judge Denies Class Action Status for Ky. Suit Against Allstate

A judge has denied class-action status to a lawsuit filed by a central Kentucky woman who alleges Allstate Insurance Co. forces claimants to file costly and time-consuming litigation to get a fair offer for damage claims.

Fayette Circuit Judge Thomas Clark ruled last week that the circumstances of Geneva Hager’s case were too unique for her to represent a class of plaintiffs.

Hager’s attorneys had asked Clark to allow them to proceed with an $800 million, class-action lawsuit against the company.

Hager, of Richmond, suffered neck and lower back injuries after her vehicle was rear-ended by a truck insured by Allstate in 1997.

The insurance company paid Hager $25,000, the policy limit for the truck’s driver, Thomas J. Lapointe Jr., more than five years ago. But Hager’s attorneys argue it was only offered days after Fayette Circuit Court Judge Thomas Clark set a trial date over her claim.

Hager’s attorneys argue that Allstate did not act in good faith and they question whether Allstate’s protocol for handling what the company calls “minor impact, soft tissue” claims violates Kentucky’s Unfair Claims Settlement Practices Act.

The plaintiff’s lawyers say Allstate illegally singles out cases with about $1,000 in property damage, trains adjusters to assume such wrecks can’t result in severe injuries and drags out those cases so claimants will give up.

Allstate contends it looks at each claim individually. It said separating low-impact wrecks is a legitimate way of weeding out fraudulent claims.

Defense attorney Mindy Barfield said Hager and her attorneys are motivated by greed and started plotting a lawsuit soon after the accident.

Clark’s ruling did not address the merits of Hager’s lawsuit.