“This is not a game,” the judge told State Farm attorneys. “Discovery games are going to stop. I am telling you now that I am not going to be pleased if there is a continuous pattern to disregard the orders of this court.”
An Oklahoma court has granted state Attorney General Gentner Drummond’s request to intervene in a homeowner’s lawsuit against State Farm.
According to OklahomaWatch.org, Drummond’s office submitted filings on December 4 alleging that State Farm has violated anti-racketeering statutes. In asking the court to permit his participation in the lawsuit, the attorney general explained what an intervention could constitute; he also responded to questions about whether the homeowner or homeowners involved in the litigation supported his involvement.
During a round of hearings, taking place on December 30, Oklahoma District Court Judge Amy Palumbo indicated that Drummond’s move to intervene appears to be supported by state law.
“I just fail to see how what State Farm has filed is anything other than irrelevant and disparaging material,” Palumbo said. “I understand what State Farm wanted me to get distracted by, but I do not find it to be on point or relevant. Having given it extensive thought, I believe the law does allow the attorney general to intervene. I do not think I require any further argument or explanation.”
OklahomaWatch.org notes that the case, Hursh v. State Farm, “has become the symbolic figurehead of an alleged scheme to deny hundreds of wind and hail claims.”
Between 2019 and 2024, for instance, Oklahoma residents filed 120,755 claims relating to wind and hail damage. Of these, about one-fifth were denied compensation. Approximately 91,588 policyholders received either partial or full payment on their claims, but were denied benefits for “total roof replacement.”
Some of the denied policyholders attempted to take legal action—a move that purportedly prompted State Farm to spend tens of millions of dollars to obtain confidential, out-of-court settlements.
Oklahoma Deputy Attorney General Cameron Capps has since said that Hursh is unique, in that its allegations transcend the claims made by other jilted policyholders.
“This is a much bigger issue, because State Farm’s actions are impacting the state interest,” Capps said.
“These practices upset the essential bargain of risk and premium that anchors a lawful insurance market, leaving Oklahoma consumers bearing disproportionate risk,” the state alleges.
Interestingly, attorneys for State Farm did not object to the state’s claims that the company was, in effect, engaged in a wide-ranging racketeering scheme. Instead, the company’s legal team repeatedly argued that Drummond’s office lacks the legal authority to participate in proceedings.
“The Attorney General’s attempt at intervention is nothing more than a ploy that violates constitutional separations of powers,” the company said in a court filing.
“There is no public interest implicated in this,” a State Farm lawyer told Palumbo during a December hearing. The company’s argument also included allegations that any legal dispute between State Farm and its policyholders should be heard by Oklahoma’s insurance commissioner—not its attorney general.
Palumbo, though, appeared somewhat frustrated with State Farm’s position, saying that she plans to do everything in her power to work past the company’s attempts to delay discovery and obstruct legal proceedings.
“If my orders are not followed, fully and flawlessly, sanctions or other options I will certainly entertain,” Palumbo said. “We’re going to get this thing streamlined. I am going to concisely steer this ship to eliminate obstacles along the way.”
“This is not a game,” Palumbo added. “Discovery games are going to stop. I am telling you now that I am not going to be pleased if there is a continuous pattern to disregard the orders of this court.”
Sources
AG Drummond approved to intervene in State Farm hail claims lawsuit
Judge Allows Attorney General to Intervene in State Farm Hail Lawsuit
Join the conversation!