Geico could be pending a $ 5.2 million legal settlement after a woman allegedly contracted a sexually transmitted disease in a car insured by the company.
A Missouri court on Tuesday upheld a ruling granting the money to the woman, who is referred to as “MO” in court documents. MO claimed to have caught human papillomavirus (HPV) for sex in 2017 with a male partner in its 2014 Hyundai Genesis, which was 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 did not report it, leaving her with “past and future medical expenses” and “mental and physical pain and suffering. “.
The woman alerted Geico that she was taking legal action against the man, alleging that she was infected by negligence in the vehicle and that the car insurance policy should cover her injuries and losses. According to the complaint, MO asked Geico for $ 1 million. “Let me know,” he wrote.
Geico denied coverage and denied his claim. After that, MO and the man went into arbitration, and the referee found that the man had infected him through negligence and awarded $ 5.2 million in compensation to MO, who had to pay Geico.
Geico appealed the ruling, but the Missouri ruling on Tuesday found that the insurer had no legal basis to appeal on several points, including that it “had no right to re-litigate” the issues after the liability and the damages had been fixed by an arbitrator and confirmed by a judgment. court.
In a statement to CBS MoneyWatch, Geico said, “The question of whether there is coverage for this matter will be determined” by a federal lawsuit filed in U.S. District Court for the Western District of Missouri.
Geico is fighting the case in federal court
Geico had also stated that he was “denied the right to litigate his interests before a sentence was handed down against his insured.” But the ruling determined that the company had a chance to participate and defend its interests when MO contacted Geico to claim that the insurance policy should cover his injuries and losses.
“Geico did not take advantage of this opportunity and instead denied coverage and refused to defend the insured,” the court noted.
However, Geico may not have to pay the $ 5.2 million sentence given the related federal court case filed by the insurer, which disputes that the claim is covered by its car policy, according to Kansas City Star, who previously reported on the Missouri ruling.