Case Study: Radcliff v. State Farm

After a violent storm in Indiana caused over $1 Billion in property damages, State Farm Insurance received 50,000 claims for damage and rejected more than 7,000. Joseph Radcliff, an enterprising roofer who formed a company to repair damaged homes, was hired by 300 or so State Farm policyholders. While working on their homes, he saw that some of his clients whose claims State Farm had rejected lived next door to homeowners whose claims had been approved by other insurance companies. Radcliff reported State Farm to the Indiana Department of Insurance. State Farm (the “Plaintiff”) got Radcliff (the “Defendant”) arrested on fourteen felony counts, including corrupt business influence and attempted theft, based on trumped-up evidence that he had vandalized roofs as a basis for fraudulent insurance claims. Radcliff countersued. All of the charges against Radcliff were eventually dismissed, but not before Radcliff’s business was destroyed, thereby eliminating 385 of 400 jobs.
— Case Overview:
Litigation: Defendant countersued for defamation, abuse of process, and interference with business relationships in response to fraud and racketeering charges by State Farm.
Damages: Lost profits and reputational damage
Stage: Jury awarded $14.5 million to Radcliff, but State Farm appealed which is when the litigation finance manager became involved
— Manager Assessment:
Representation: Manager hired one of the best appellate lawyers in Indiana, Julia Gelinas, a fellow of the elite American Academy of Appellate Lawyers.
Commitment: $2.5MM, of which Radcliff used ~$2.3MM to pay outstanding legal bills
Case Outcome: Defendant won on two appeal processes and was awarded $17MM in damages & interest

Topics: Litigation Finance

Works Cited:
LexisNexis
Chip Merlin | State Farm hit with $14.5 Million Dollar | July 14, 2011
https://www.propertyinsurancecoveragelaw.com/2011/07/articles/state-farm/state-farm-hit-with-145-million-dollar-defamation-verdict/