A Cochise County couple whose vehicle was stolen in September 2018 sued their auto insurance company last month for breach of contract after their theft claim went unpaid for nearly eight months during which time they continued to make loan payments to protect their credit record and had to pay for a rental car at their own expense.
According to the lawsuit, a 2017 GMC pickup owned by David and Mercedes Ruiz was reported missing around 7:20 a.m. on Sept. 19, 2018 from the Douglas property of Heriberto Campas, father of Mercedes Ruiz. The Cochise County Sheriff’s Office (CCSO) discovered the truck was driven into Mexico via the U.S. Port of Entry in Douglas shortly after 7 a.m.
U.S. Customs and Border Protection even had a photograph of the vehicle crossing the border, the Sept. 18, 2020 lawsuit states. However, American Family Mutual Insurance Company kept the claim unpaid for several months even though a claim was reported to the company the same day as the theft.
“Rather than timely pay an obvious theft claim, American Family delayed payment for over six months making one unreasonable demand after another from the Plaintiffs,” the lawsuit contends.
One such demand was for David Ruiz to undergo an Examination Under Oath, a formal proceeding during which an insured is questioned under oath by an insurance company representative in the presence of a court reporter.
American Family finally paid the claim in May 2019, but only for the value of the stolen vehicle. The company refused to reimburse the family for nearly $3,900 in loan payments made while waiting for the theft claim to be processed.
The insurance company’s adjuster also denied payment for thousands of dollars incurred by their insureds to rent a comparable vehicle until the claim was finalized. As a result, American Family is also accused of committing breach of the duty of good faith and fair dealing.
“The Plaintiffs have suffered financial and emotional stress, embarrassment and humiliation at the hands of American Family which has essentially treated the Plaintiffs like criminals,” the lawsuit contends. “The Plaintiffs have incurred damages, both financial and emotions, with the exact amount of damages to be proven at trial.”
A summons has been issued to American Family, which will have 30 days to answer the lawsuit once the company is formally served. The case has been assigned to Judge Timothy Dickerson who is expected to preside over a jury trial in late 2021 or early 2022.
The lawsuit notes OnStar was also immediately informed of the theft but failed to disable the truck in Mexico and took no action to help locate the vehicle in Mexico. OnStar provides vehicle safety and security services which includes GPS tracking but is not a defendant in this civil action.