On September 2, 2017, a tragic head-on collision in Valencia County forever altered the lives of a 4-year-old boy and his aunt.
The aunt faced an impossible choice as a vehicle in her lane approached at 70 mph in a 35 mph zone. With limited options, both cars mirrored each other's actions, resulting in a devastating head-on collision.
Regrettably, the aunt lost her life, heroically shielding her young nephew from the impact. The collision inflicted severe physical and emotional injuries on the 4-year-old, leading to emergency abdominal surgery to address internal bleeding.
Just five days before the collision, the aunt, recognizing the need for additional protection following a recent insurance claim and considering her family's long history with State Farm, reached out to reinstate coverage. For an additional $30 per month, State Farm offered to upgrade her coverage from $25,000 to an impressive $1,000,000.
Tragically, State Farm took a perplexing turn following the aunt's passing. Instead of honoring the purchased $1 million coverage, they inexplicably reduced the policy to $25,000 without knowledge or consent from the remaining policyholder. The family later discovered the $1,000,000 declaration page, proving the woman had indeed purchased additional coverage.
State Farm admitted the existence of the $1 million policy but refused to fulfill its obligation, alleging the woman was fully at fault for the accident. However, on October 31, 2023, a Santa Fe jury ruled that the woman was not entirely at fault and that State Farm had breached the $1,000,000 contract, committed bad faith, and violated trade practices acts. The jury awarded the family $12,000,000 for the accident and an additional $24,000,000 in bad faith and breach of contract damages, with $20,000,000 as punitive damages to State Farm.
This $36,000,000 verdict provided the family with confirmation that the woman was not solely at fault for the accident, as State Farm claimed, and exposed the company's conduct as cruel and malicious. The legal outcome brought validation to the family's pursuit of justice in the face of State Farm's unethical practices.
