September 5, 2007

Geneva Hager, 60, isn't a pro se claimant making up her own numbers as she goes along; she was slated to be the named plaintiff in a class action accusing the giant insurer of employing computer formulas, scripted decision trees and similar horrors to avoid paying adequate sums for soft-tissue injuries in low-speed collisions. A Fayette County, Ky. judge denied class certification last year, so now Ms. Hager wants $475 million in compensatory damages for mental anguish plus an added $950 million in punitive damages to punish the carrier. "Allstate, which has said that greedy trial lawyers are using Hager as a pawn, says [Lexington, Ky. attorney Dale] Golden is simply trying to grab headlines. 'When the case was first filed, her attorney alleged the damages were under $20,000,' Allstate spokesman Mike Siemienas said." For much more on the "Colossus" claims-handling program, the "McKinsey documents" and related matters, see Business Week's decidedly trial-lawyer-friendly account of last year.