Insurers seek Indiana Supreme Court review of family’s damage award

Insurance industry trade groups are asking the Indiana Supreme Court to review an appeals court decision that awarded damages for emotional distress to the family of an injured man, saying it could set a costly precedent.

The groups are joining the appeal regarding $200,000 a judge awarded to the family of a man whose injuries in a 2002 crash that left him quadriplegic and permanently reduced his mental capacity. The man’s insurer, State Farm Insurance Co., had already paid the family $1.1 million and argued it should not have to pay the additional amount.

The Insurance Institute of Indiana, the National Association of Mutual Insurance Companies, and the Property Casualty Insurers Association of America filed legal brief in the case between State Farm and the family of Richard Jakupko.

“While we certainly sympathize with the Jakupko family, the policy in question simply does not cover this kind of claim,” said Insurance Institute president Stephen Williams. “We believe the court overreached in this instance.”

Jakupko’s wife, and sons were passengers during the crash and were less seriously injured.

State Farm paid $1 million under a personal umbrella policy and $100,000 under an underinsured motorist policy which had a limit of $100,000 per person or $300,000 per accident.

The family filed suit, seeking $200,000 more for family members’ emotional distress that led to uncontrollable crying, sleeplessness, fatigue and more.

A Hamilton Superior Court judge agreed that each family member should be covered and ruled in their favor. State Farm appealed, but the Indiana Court of Appeals last month upheld the lower court ruling.

Topics Carriers