August 7, 2017
July 28, 2017 marked a significant victory for Davis Graham & Stubbs LLP attorneys Tom Johnson and Jennifer Allen in a 14-year lawsuit. The two defeated class certification on behalf of their client Farmers Insurance. The case began in 2003, when plaintiffs’ attorneys filed a large class action against all major auto insurance carriers in Colorado. The plaintiffs argued that they were fraudulently induced into purchasing more uninsured/underinsured motorist coverage because the insurance companies did not inform customers of a 2001 Colorado Supreme Court case that broadened the scope of uninsured/underinsured motorist coverage. The initial class eventually was separated into over 50 class actions. The proposed class in the Farmers action included over 250,000 Colorado residents and involved over $65 million in potential damages.
Mr. Johnson and Ms. Allen, along with Janette Ferguson of Lewis Bess, participated in a week-long class certification evidentiary hearing in April. On July 28, the Court released its 27-page order denying class certification, finding that Farmers did not intentionally conceal information from its customers and that many customers would have continued to purchase the insurance even if told of the Supreme Court decision.