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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. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

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  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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