Judge Adds to Verdict in Trial of Pair of Chicago Companies

October 22, 2001

A judge has added $1.8 million in punitive damages to a $3 million jury verdict in the fraud trial of two Chicago area insurance companies accused of dragging their feet in paying out claims.

According to a report in the Chicago Sun-Times, Illinois insurance officials will review documents in the case against Gallant Insurance Co. and Valor Insurance Co., two companies of Warrior Insurance Group Inc. of Bedford Park, and decide whether any regulatory action is appropriate and to what degree.

Warrior Insurance Group, which has since been renamed J&P Holdings Inc., was ordered Sept. 27 to pay $1.8 million to Robert L. Baron Jr. of Downstate Marissa. Baron said the company failed to pay on his $9,500 claim after his 1992 Nissan pickup truck was stolen March 25, 1998, and burned. He also said it did not pay on a previous $1,600 claim involving a collision with a deer.

St. Clair County Circuit Judge Jan V. Fiss also ordered $24,300 in compensatory damages, $50,000 for unreasonable delays in paying the claims and more than $190,000 in attorneys’ fees and costs. Fiss’ order is an addition to a July 30 jury verdict of $3 million in punitive damages and $35,000 in compensatory damages.

Baron’s lawyer, Chris Kolker of Belleville, deposed former company employees who said they were rewarded for unjustly denying or low-balling claims. Company officials deny that happened.

But Fiss commented that evidence showed reprehensible and outrageous consumer fraud, deceptive practices and misrepresentations of fact. James P. Hallberg, president of J & P Holdings, said the company plans to appeal.

Gallant and Valor are so-called non-standard insurers that specialize in insuring drivers with poor records. The companies are among a small number of Illinois insurers that have drawn criticism for allegedly stalling on paying claims.

Valor and Gallant insure some 100,000 drivers in Illinois, Indiana and Missouri.

Topics Legislation Illinois

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