Romanov V. State Farm Mutual Automobile Insurance Company

Case Background

On December 12, 2022, Plaintiff  Susan Romanov filed a lawsuit against her insurance company alleging breach of contract, negligence, bad faith, and fraud. The case was filed in the United States District Court, Tennessee Eastern (Knoxville). The case was assigned to District Judge Travis R McDonough and referred to Magistrate Judge Debra C Poplin. [Case number: 3:22cv443]

Cause

The case concerned a 2006 International 4400 dump truck owned by Plaintiff Susan Romanov from Sevierville, Tennessee. Romanov had insured the truck with Defendant State Farm Mutual Automobile Insurance Company.

Romanov alleged that a colleague named Paige Summers stole her truck and drove it across the country. She miraculously found Summers and the truck at a Wal-Mart in Houston. However, Summers escaped again. Romanov managed to track him down in Washington State, but he eluded her once more.

Eventually, Romanov recovered the truck with law enforcement’s help in Colorado. She believed that Summers had operated it recklessly, causing severe damage. Subsequently, she filed a claim for damages with State Farm. The insurer initially offered her $25,000 for the truck, but this amount was subject to a $39,000 payoff. Romanov rejected the offer, as it would have left her financing “upside down” on the vehicle.

Following her rejection, State Farm fully denied the claim, stating that no damages had occurred. The insurer argued that the truck’s decrease in value resulted from regular wear and tear. Determined to enforce her insurance contract, Romanov, proceeding pro se, filed this lawsuit.

Damages

Plaintiff Romanov sought to recover all the damages caused to her truck under the policy. Romanov sought a judgment against the defendant for $125,000 in general and compensatory damages. Additionally, she requested punitive damages, not exceeding $250,000 or the maximum allowed under Tennessee law.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Susan Romanov
    • Counsel for Plaintiff(s): Pro se (self-representation)
  • Defendant(s): State Farm Mutual Automobile Insurance Company
    • Counsel for Defendant(s): Matthew J Evans | Corey Williams

Claims

The Plaintiff’s complaint included claims for breach of contract, fraud, negligence, bad faith, and violations of Tenn. Code Ann. § 47-18-104 (11) and (14). The Plaintiff argued that State Farm was liable for breach of contract. After the Plaintiff’s truck was stolen and known to be damaged, State Farm received written notification of the damages.

The Plaintiff submitted a claim for the loss related to the stolen truck, following the guidance of State Farm’s agent, Bennie Arp Agency, and representative Terry Toole. However, State Farm refused to pay even the initial claims submitted at a reasonable amount. Consequently, the Plaintiff felt that State Farm failed to make him whole, thereby breaching the insurance contract.

Furthermore, State Farm never inspected the truck to assess the total damages in New Mexico. They did not obtain a complete estimate for repairs, and no State Farm adjuster or inspector ever visited Tennessee as promised. The defendant, State Farm Mutual Automobile Insurance Company, along with its claims department and agents, acted recklessly and negligently in handling the Plaintiff’s claims. They also acted in bad faith by failing to compromise or settle the Plaintiff’s claims in a timely and complete manner.

Defense

State Farm defended its position on damages but also presented evidence showing that Romanov had allowed Summers continuous permissive use of the truck. They noted that Summers first “stole” the truck in March 2018. However, Romanov did not report it stolen until three months later.

Jury Verdict

On July 03, 2024, the Tennessee jury returned a defense verdict in favor of the Defendant State Farm Mutual Automobile Insurance Company on the breach of contract claim. A defense judgment was accordingly entered.

Court Documents:

Available upon request