The company, GEICO, was compelled to provide compensation to M.O. For the sexual encounters that occurred in late 2017 due to her pain, suffering, medical costs, and the claim that the owner of the vehicle contracted HPV from her. This obligation arose because GEICO had insurance coverage for the car during that period.
She, fairly and appropriately compensated with a “sum of money” totaling $5.2 million, was awarded by an arbitrator approximately two months later. The two parties agreed to settle their dispute by signing an arbitration agreement in March 2021.
GEICO turned to the superior state court following M.O.’S victory and the implementation of the arbitration decision in the circuit court of Jackson County, Mo.
According to two judges in the Missouri Court of Appeals’ western district, GEICO had multiple opportunities to take action on its own behalf. In their recent ruling, the judges stated that the insurance company claimed it was not given an opportunity to protect its interests, thereby infringing upon its constitutional rights to fair treatment and legal recourse.
The third judge on the appeals panel concurred with the court’s ruling, stating that GEICO had not been given a meaningful opportunity to participate in the suit before judgment was rendered. The woman also sent a copy of the lawsuit to the company, noting that she initially submitted a claim for more than $1 million against the insured man over a year ago, in February 2021. Additionally, she offered to settle the claim at that time.
GEICO is also challenging the substantial settlement in federal court.
In April, M.B. And M.O. Sued GEICO, asking the federal court to rule that the insurance company isn’t liable for the woman’s HPV infection, as Missouri now has a duty to defend the man against her claims.
GEICO asserts that claims for coverage of the owner’s car should be dismissed based on legal doctrines such as fraud, collusion, illegality, laches, and unclean hands.
GEICO is being held responsible for refusing to settle her claim and defend the man who owns the car, despite multiple requests, arising from his actions of negligence involving his automobile. She says GEICO acted in bad faith, but M.O. Says.
GEICO has filed more than 100 entries in its federal suit docket well over a year ago. Currently, the federal case is scheduled to begin in a Kansas City courtroom in October, where a jury trial is set.