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Contractor wins on appeal of $14.5M damages award for defamation

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State Farm Fire & Casualty Co. is on the hook for $14.5 million in damages after a contractor prevailed on his defamation claim against the insurer. The award is one of the largest defamation damages in the country, according to the court.

State Farm was in the midst of receiving bad press for its denial of homeowners’ claims for hail damage to their roofs following a 2006 spring storm in central Indiana. Joseph Radcliff created Coastal Property Management to help State Farm homeowners identify and repair damage, and file claims. State Farm began looking into CPM’s work, and the insurer hired engineers to inspect roofs of homeowners whose claims were denied. Some reports showed damage caused by hail or wind, but some claimed that mechanical damage was caused intentionally by CPM. State Farm only forwarded information unfavorable toward CPM to the National Insurance Crime Bureau, which forwarded its findings to the Indianapolis Metropolitan Police Department.

Radcliff was arrested for multiple counts including insurance fraud, attempted theft and corrupt business influence. After his arrest, State Farm issued a statement to an Indianapolis television station that had covered State Farm’s denial of claims, saying the company is committed to fighting fraud. Radcliff’s arrest led his company to lose significant business.

The charges were dropped after Radcliff admitted there was probable cause for his arrest for misdemeanor criminal mischief. Later, State Farm filed a lawsuit in Hamilton County against Radcliff and his company, alleging racketeering and insurance fraud. Radcliff countersued for defamation and won the large damages award after a six-week trial in 2011.

In State Farm Fire & Casualty Company v. Joseph Martin Radcliff and Coastal Property Management LLC, a/k/a CPM Construction of Indiana, 29A04-1111-CT-571, State Farm appealed, arguing that its communications with NICB and IMPD were protected by statutory immunity and a common-law privilege for reporting crime, and that Radcliff failed to prove actual malice by clear and convincing evidence.

 Judge Nancy Vaidik authored the 61-page unanimous decision, writing that evidence shows State Farm lacked grounds for belief in the truth of their statements sent to NICB because they only sent portions of the reports that were favorable to their claims. Evidence also pointed to CPM being targeted because Radcliff talked to the local news about State Farm’s denial of claims and the insurer had faced recent bad press.

“Here, the jury heard testimony of a man whose whole world – professionally and personally – was destroyed by State Farm’s accusations and the accusations’ role in his arrest, and it heard from Dr. (Bruce) Jaffee, who testified that Radcliff had $7.5 million in lost earnings, and Dr. (Kim) Saxton, who explained that Radcliff’s reputation was in a ‘virtually unrecoverable’ place. The jury’s damage award does not punish State Farm; rather, it attempts to compensate Radcliff for the longstanding consequences it caused on the only profession that Radcliff ever knew. Accordingly, the $14.5 million damage award is not excessive,” Vaidik wrote.

 

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  1. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  2. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  3. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  4. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

  5. to answer your questions, you would still be practicing law and its very sad because we need lawyers like you to stand up for the little guy who have no voice. You probably were a threat to them and they didnt know how to handle the truth and did not want anyone to "rock the boat" so instead of allowing you to keep praticing they banished you, silenced you , the cowards that they are.

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