Firm Ordered to Pay Woman $9 Million
Allstate Insurance Co. must pay $9 million to a former North Hollywood woman because it seized $13,000 she made from selling a house, a Los Angeles Superior Court jury has decided.
Aimee Banter, who now lives in Silvis, Ill., won the unusual verdict Wednesday, after a weeklong trial before Los Angeles Superior Court Judge William Drake.
After little more than a day of deliberation, jurors unanimously awarded Banter $500,000, including the $13,000 and monetary balm for her emotional distress, and $8.5 million in punitive damages.
Thomas Mortimer, Banter’s lawyer and a specialist in “bad-faith” cases against insurance companies, said the woman’s problems began in 1978, at the time of her divorce from her husband, Robert Sikes. In dividing their property, the couple sold their home, and Banter expected to collect $13,000 as her share.
$50,000 Judgment
Before the marriage, however, Mortimer said, Allstate had won a $50,000 judgment against Sikes to recover funds it paid as a fidelity bond for a business in which he was involved. When he made money from selling the house, Allstate rightfully attached Sikes’ portion, Mortimer said, but also wrongly took Banter’s share.
When Allstate refused to turn over Banter’s $13,000 to her, Mortimer said, she sued.
He said the experience had been emotionally trying for Banter, prompting her move from California to Illinois.
David Zweig, the attorney representing Allstate, could not be reached for comment. The company is expected to ask Drake to reduce the verdict or grant a new trial, the preliminary steps to appealing the case.
