State Farm Mutual Automobile Insurance Co. v. Reeder

WINTERSHEIMER, Justice.

This appeal is from a decision of the Court of Appeals which reversed the circuit court and held that KRS 304.12-230, the Unfair Claims Settlement Practices Act, creates a private right of action against an insurance company by third-party claimants. The Court of Appeals affirmed the denial by the circuit court of prejudgment interest because it was based on unliqui-dated damages.

The principal issue is the enforceability of a private cause of action under the unfair claims settlement practices statute.

Reeder and the parents of Paul Hampton are next door neighbors and…