Posted On: November 29, 2008, 11:19 pm CST

Posted By: State Farm's Special Investiga

Two years from the date of the theft, the day any potential criminal statute of limitations were to run, Marvin Vail and Jennie Hampton were charged with felony insurance fraud in Johnson County, Kansas. The bases for the State's charges derived entirely from information provided by State Farm and co-defendant, the National Insurance Crime Bureau. It was later uncovered that during their independent investigation, State Farm's Special Investigative Unit threatened an independent witness to solicit purgery, concealed and disregarded clear exculpatory evidence, reported what information they did collect in a false manner, and directed the conclusions of their mechanical expert. State Farm, knowing they did not have access to the Johnson County District Attorney's Office, then provided this one sided and erroneous information to NICB, requesting instead that they refer the case to the Johnson County District Attorney for charging.

NICB followed State Farm's instruction and, through its employee and retired KBI agent who as an active agent worked side by side with the DA, presented the file to the Johnson District Attorney. Prior to this, the NICB had done absolutely no independent investigation to either confirm or deny the facts presented by State Farm. Rather, while presenting this information to the D.A., NICB admittedly "watered down" exculpatory evidence trying to instigate charging. Additionally, while meeting with the Johnson County D.A., NICB withheld critical evidence by not informing the prosecutor that it was State Farm, not NICB, which was behind the investigation and referral.

After reviewing the information provided, felony insurance fraud charges were filed against both Jennie Hampton and Marvin Vail. Prior to this neither Hampton nor Vail had any criminal history. As a result of the charges they were arrested, faced the extreme humiliation, anxiety and expense that is tied with being criminal defendants.

Following the criminal charges, State Farm continued to work behind the scenes preparing the State's witnesses for the preliminary hearing testimony, claiming privilege on documents sought by the prosecutor, attempting to keep crucial evidence from being inspected by plaintiffs' criminal attorneys, closely monitoring the criminal trial and providing well-prepared witnesses to testify at trial.

Eventually, on May 10, 2001, after a ten day criminal trial, both Jennie and Marvin were acquitted of all charges. Rather than showing remorse for instigating the wrongful prosecution, State Farm continued to not only proclaim Hampton and Vail's guilt, but deny Ms. Hampton's claim.

After the acquittals, Jennie Hampton's breach claim in Johnson County, Kansas against State Farm was dismissed and re-filled with her and Marvin's claims for malicious prosecution and the tort of outrage against State Farm and the NICB. After a three week trial in Jackson County, but before verdict, defendant NICB entered into a 537.065 high low agreement with a high of $100, 000 and low of $110,000 for Mr. Vail and $150,000 and $160,000 for Ms. Hampton. The jury returned a verdict for plaintiffs on all counts, and after a post trial hearing the Court entered judgment against NICB as set forth in the 537.065 agreement. The Court also entered judgment against State Farm for $200,000 in actual damages for Ms. Hampton and $175,000 for Marvin Vail. For her breach claim against State Farm the Court entered judgment in favor of Ms. Hampton for $251,700 in attorney fees. Additionally, the court entered judgment in favor of Marvin Vail and Jennie Hampton individually for their punitive claims against State Farm in the amount of $4,000,000 each.