State lawsuit against State Farm still dormant

Case reportedly under review despite no action having been taken since March last year

State lawsuit against State Farm still dormant

Insurance News

By Allie Sanchez

A 2014 Louisiana lawsuit against State Farm is in stasis, but the Attorney General’s office does not want it dismissed.

The legal action was originally filed by former Attorney General Buddy Caldwell, which alleged that the insurer pushed auto repairs to predetermined shops and engaged in underhanded cost-cutting practices, which involved using old or damaged parts to repair the cars of claimants.

Local media outlet Louisiana Record reported that District Judge Donald Johnson dismissed the case in December 2015, but Caldwell refiled the case for review in January 2016.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

However, he lost to Jeff Landry in the November 2015 attorney general derby, so Caldwell was not able to follow through with the complaint.

Still, Landry said in a statement that he does not want the case dismissed even if the last action taken in the case was recorded in March 2016.

The Record also quoted a statement from Press Secretary Ruth Wisher as saying, “All cases and contracts begun in the previous administration are under review to ensure the Department of Justice upholds the rule of law, adheres to the Constitution, and protects the right of the state and its citizens.”


Related stories:
Allstate lays off Esurance staff as losses add up
Specialist auto insurer has credit ratings withdrawn

Keep up with the latest news and events

Join our mailing list, it’s free!