Geico may be on the hook for a $ 5.2 million lawsuit after a woman claims she contracted a sexually transmitted disease in a company-insured car.
A court in Missouri on Tuesday upheld the verdict that awarded the money to the woman, who is listed in court documents as “MO”. MO claims to have caught the human papillomavirus (HPV) from sex in 2017 with a male partner in his 2014 Hyundai Genesis, which is covered by Geico, according to a 2021 complaint.
The woman, who learned she was infected with HPV in 2018, said the man knew she had HPV but was unable to inform her, leaving her with “past and future medical expenses” and “mental and physical pain.” and suffering. “
The woman alerted Geico that she was suing the man, claiming she had been negligently infected in the vehicle and that the car insurance policy should cover her injuries and losses. According to the complaint, the MO asked Geico for $ 1 million. “Let me know,” she wrote.
Geico denied the cover and rejected her claim. MO and the man then went into arbitration and the arbitrator found that the man had infected her through negligence and awarded MO $ 5.2 million in damages to Geico.
Geico appealed the verdict, but Missouri’s ruling Tuesday found the insurer had no legal grounds to appeal on several counts, including “no right to remove” issues after liability and damages were determined by an arbitrator and confirmed by a courtroom.
In a statement to CBS MoneyWatch, Geico said, “The question of whether there is coverage for this issue will be determined” by a federal lawsuit filed in the U.S. District Court for the Western District of Missouri.
Geico is suing in federal court
Geico also claims that he was “denied the right to challenge his interests before a judgment is given against his insured”. But the decision found that the company had a chance to participate and defend its interests when the MO contacted Geico to argue that the insurance policy should cover its injuries and losses.
“Geico did not take advantage of this opportunity and instead refused coverage and refused to protect the insured,” the court said.
However, Geico may not have to pay the $ 5.2 million sentence, given the related federal lawsuit filed by the insurer, which disputes that the lawsuit is covered by its automotive policy, according to the Kansas City Star, which announced the Missouri decision early.
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