Davis Levin Livingston is proud to announce that Attorney Chase Livingston, in collaboration with Thomas Otake of Alapa & Otake, has secured a $3.1 million verdict for a retired public school teacher, Mr. Randall Sugimoto, in a lawsuit against Farmers Insurance Hawaii.
As court records show, the case involved a head-on collision that occurred in 2012, after which Mr. Sugimoto sought to collect on the $300,000 in underinsured motorist coverage he had diligently paid for over 24 years without ever making a claim. Despite his longstanding history as a loyal customer, Farmers wrongfully delayed and denied his valid claim.
During trial, our team showed that Farmers’ conduct amounted to bad faith – a failure to fulfill its duty of good faith and fair dealing. The jury agreed, awarding Mr. Sugimoto $300,000 in compensatory damages and an additional $2.8 million in punitive damages intended to punish the insurer and deter similar conduct in the future. As Attorney Chase Livingston stated:
“Thirteen years after the accident, and over nine years after Farmers Hawaii first denied his claim, yesterday’s jury verdict delivered a message recognizing Mr. Sugimoto’s long struggle for justice. His courage and perseverance has shed light on an unfair system and shown that the people of Hawaiʻi will not tolerate this type of treatment from insurance companies.”
This outcome sends a strong signal that insurers cannot put profits over people by unfairly disputing, delaying, or denying valid claims. It also reaffirms our team’s commitment to fighting on behalf of policyholders who have been wrongly treated and to holding corporations accountable.
What Is Insurance Bad Faith?
When you purchase an insurance policy, you enter into a contract with the insurer based on the principle of good faith and fair dealing. This means insurers are legally obligated to:
- Conduct a thorough and timely investigation of claims,
- Evaluate claims fairly, and
- Provide prompt payment for valid claims.
If an insurance carrier unfairly disputes, delays, or denies a legitimate claim—thus violating its duty of good faith and fair dealing—you may have grounds for an insurance bad faith lawsuit. These cases hold insurers accountable and seek to recover damages for harm caused by an insurer’s wrongful actions.
View our Press Release here.
You can learn more about insurance bad faith here.
Davis Levin Livingston has built a legacy of taking on powerful corporations and insurance carrier. If you believe your insurer has failed to uphold its obligations, we encourage you to call (808) 740-0633 or contact us online and speak with a member of our team.