ACTS LAW Obtains Six-Figure Verdict Against State Farm in Hard-Fought Bad Faith Trial

ACTS LAW partner Boris Treyzon and attorneys Sara McClain and David Bederman, and Hamassian Law APC partner Anthony Hamassian and attorney Alec G. Bedrossian, obtained a six-figure verdict in an insurance bad faith trial against billion-dollar insurance company State Firm.

In this homeowner’s insurance lawsuit, Jean Pierre Khoury and Lisa Khoury insured their home, which was built on a concrete slab foundation, with State Farm General Insurance Co. Under the terms of the policy, the insurer agreed to provide coverage and benefits to them for all covered losses.

In 2019, a copper water pipe supply line in the concrete slab burst, causing water damage to the property. The Khourys reported the incident to State Farm in a timely manner and hired a plumber to replace the failed water line. They also retained a water mitigation company to dry the property.

State Farm concluded that the failed pipe was below the concrete slab, and, therefore, the resulting damage fell under an exclusion to the policy.

Hamassian Law APC and ACTS LAW litigated a lawsuit on behalf of the Khourys against State Farm, alleging breach of contract and breach of the implied covenant of good faith and fair dealing. The plaintiffs argued that the insurance giant had failed to inspect their property in connection with the claim, and failed to train and supervise their adjusters regarding the claim. Moreover, the Khourys asserted that the defendant was untruthful regarding their claim, and denied it without conducting a full and thorough investigation as required by California law.

The jury awarded the Khourys more than $639,500, including $500,000 for emotional distress. This was an amazing result given that ACTS LAW received the case just ten days before trial. The Khourys were treated poorly by State Form for over five years, and were offered a pittance of just $20,000 before trial as a proposed settlement.

The case is Khoury v. State Farm Gen. Ins. Co., No. 20TRCV00601 (Cal. Super. Ct. Los Angeles Cnty. June 18, 2024).

About ACTS LAW

Founded by four premier trial attorneys, ACTS LAW handles high-stakes litigation in the areas of major property damage, including landslides and construction defects, catastrophic personal injury, wrongful death, insurance bad faith, employment law, business litigation and much more. With more than three-dozen attorneys and 100+ staff members throughout Southern California, the firm’s legal team has been recognized by Consumer Attorneys Association of Los Angeales, the Daily Journal, Super Lawyers and others as being top trial attorneys.