Allstate's insured recovers for stolen car; can't sue Allstate for denying claim or alleging fraud
William Hall purchased a 1995 Mercedes Benz and insured it for comprehensive coverage with Allstate. On Christmas Eve, it was stolen. When recovered, the engine was missing and it had suffered additional damage. Allstate refused to pay the claim and accused the Oakland County resident of fraud. He sued and recovered a verdict for $16,000.00. Allstate appealed to the trial judge, arguing that his proofs regarding the cost of a new engine were too "speculative" and the judge ordered a new trial on that issue. Ultimately the parties compromised on a property settlement of $8,000.00. In the meantime, the judge also dismissed Hall's claims against Allstate for wrongfully accusing him of fraud.On appeal, the Court upheld the dismissal of Hall's claims against Allstate arising out of the fraud accusations. It determined that Allstate's conduct was not so "egregious" as to allow Hall to sue.