Nationwide Insurance has recently been ordered to pay $18 million in punitive damages and $3 million in attorneys fees after losing a case against couple Daniel and Sheryl Berg. More than 16 years ago, the Bergs sued Nationwide for returning them a vehicle that still had substantial structural damage following a collision.
The Bergs were involved in a vehicle accident that caused severe damage to their 1996 Jeep Grand Cherokee. They brought the vehicle to a Nationwide “Blue Ribbon Repair Program” facility, where they were informed that the vehicle was too damaged to repair, and that the car should be considered totaled. Nationwide later reversed that assessment, brought the vehicle to another repair facility, and eventually returned the Jeep to the Bergs, when it still had an unsound structural frame and was unsafe to drive.
The Bergs filed a bad-faith claim against Nationwide, and Nationwide responded by dragging the case out for a shocking 16+ years, while also spending over $2.5 million in legal defense fees. Finally, on June 12th, Berks County Court of Common Pleas Judge Jeffrey K. Sprecher ruled in favor of the Bergs, also commenting that “Nationwide strong-armed its own policyholder rather than negotiating in good faith to compensate plaintiff for the loss suffered in the automobile collision.”
While this was a positive ending to an absurd and abusive legal battle, the whole situation shows the problems in the current legal envionronment. Massive companies like Nationwide have such an enormous legal advantage against consumers, they can afford to pay millions in legal fees and impose nearly endless delays and legal roadblocks, just to prevent paying comparatively tiny benefits to consumers.
The average individual simply cannot afford the time or legal fees to effectively pursue justice when they have been injured or suffered a loss due to a company’s negligence. The current legal climate is such that even completely valid legal claims can be effectively shut down by large companies purely based on their resources, not the validity of the claims themselves.
Nationwide’s behavior in this specific case shows a calculated effort to intimidate their customers against taking legal action. As judge Sprecher commented, “Simply put, what plaintiff, and more importantly, what lawyer in his right mind, will compete with a conglomerate insurance company if the insurance company can drag the case out 18 years and is willing to spend $3 million in defense expenses to keep the policyholder from getting just compensation under the contract?” Its message is (1) that it is a defense-minded carrier, (2) do not mess with us if you know what is good for you, (3) you cannot run with the big dogs, (4) there is no level playing field to be had in your case, (5) you cannot afford it and what client will pay thousands of dollars to fight the battle, (6) so we can get away with anything we want to and (7) you cannot stop us.”
The judge’s comments clearly illuminate the nature of the legal problem and Nationwide’s abusive behavior. This is a case where justice is being suppressed actively and intentionally by corporate power and greed.
The Nationwide case is just another example of why effective and ethical personal injury attorneys are a vital component of the legal landscape. While major corporations have huge legal teams and virtually limitless legal resources, the average consumer might only have a single attorney and limited budget to attempt to find justice and receive compensation for their injuries.
Personal injury lawyers are ultimately some of the few who are truly on the side of the average person. With such an unfair legal playing field, everyone who has suffered a loss due to corporate negligence or outright maliciousness should seek the counsel of an experienced personal injury attorney as soon as possible. Only through ongoing legal struggles can personal injury attorneys work with consumers to achieve victories like the Nationwide case and shift the balance of legal power back into the hands of the people.
At Wormington & Bollinger, our experienced personal injury attorneys fight everyday for the rights of consumers who have been injured by corporations. If you or a loved one need help in finding justice for your injury, please contact our team today for a free consultation.