Ryder v. State Farm Mutual Automobile Insurance

A trial on the issue of coverage was held. The jury found that the defendant had made a material misrepresentation in applying for insurance. This finding is not disputed on appeal. However, the trial court found that State Farm was “estopped from raising its policy defense on the grounds of laches and by virtue of its conduct in not taking timely affirmative action to cancel the policy after learning of the facts surrounding misrepresentation.”

Therefore, the facts surrounding the misrepresentation and the action of State Farm upon learning of the misrepresentation became important.

On…