$21 Million Verdict Against Nationwide Mutual Ins. Co.

Berg v. Nationwide

In an insurance bad faith action, arising from a $25,000 collision claim, Mayerson Law secured a punitive damage award of $18 million, plus $3 million in attorney fees, against Nationwide Mutual Insurance Company. The verdict was entered in Berks County on June 21, 2014. This is the largest insurance bad faith verdict, by a policy holder against their own insurance company, in Pennsylvania history.

The case began on September 4, 1996, when Sherri Berg was involved in a serious motor vehicle collision. A claim was submitted to her insurer, Nationwide Mutual. Nationwide recommended the Bergs have their collision claim appraised and repaired by one of its designated Blue Ribbon repair facilities, through its Blue Ribbon Repair Program. Nationwide promised a Blue Ribbon appraisal, from a Blue Ribbon repair facility, backed by a Blue Ribbon guarantee. Unbeknownst to the Bergs, the vehicle was originally appraised as a structural total loss due to a twisted frame. Instead of reporting the total loss to the Bergs, as required by state law, Nationwide directed the vehicle be transported to an undisclosed, unapproved repair facility to attempt the frame repairs that its Blue Ribbon facility was unable to undertake. Four months later the vehicle was returned to the Bergs in a dangerous condition, with hidden structural repair failures.

This firm proved that Nationwide was secretly aware of the dangerous structural repair failures per routine inspections it performed throughout the extended, four-month repair period. Nationwide nevertheless permitted the vehicle to be returned to the Bergs with hidden structural repair failures causing the tires to wear down to the metal belts. When the Bergs learned of the extensive, structural repair failures and retained legal representation, Nationwide implemented its well-documented strategy to price this firm out of the litigation by concealing evidence, asserting false claims of privilege, and misrepresenting the law to the trial court. After six years of appellate review this firm won a new trial during which it was proven that Nationwide paid its own attorneys in excess of $3 million to defend its fraudulent and deceitful handling of the underlying collision claim, in what can only be described as a reprehensible attempt to price this firm out of securing justice for the Bergs.

This case is now discussed across the legal community and other lawyers seek our advice in their legal battles on behalf of clients facing similar obstacles.

We are grateful to the legal system which prevailed, at each appellate level, so that our trial judge could render Justice after 16 years of intense litigation.