State Farm Must Pay Millions

State Farm Insurance should pay $8 million in punitive damages to two Missouri residents who accused the insurer of malicious prosecution and breach of contract, a state appeals court has ruled. Jennie Hampton and Marvin Vail were charged with insurance fraud nearly 10 years ago after State Farm declined to pay a $10,000 claim for a stolen vehicle owned by Hampton. Hampton and Vail were later acquitted of the charges. In the civil trial, a jury awarded Hampton and Vail 400,000 each in addition to punitive damages assessed by the judge. Tony Rizzo, Kansas City Star 01/08/2008
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