Washington court revives Anderson suit vs Farmers
A Washington appeals court ruled on Oct. 21 that some claims against Farmers Insurance can proceed after a $21 million verdict left the insurer’s policyholder bankrupt. Cristina Anderson was struck by Wendy Gibson’s car in 2019 and won the massive jury award. Gibson then filed for bankruptcy, and Anderson bought Gibson’s potential legal claims from the bankruptcy trustee.
Anderson sued Farmers, alleging the company mishandled Gibson’s defense and acted in bad faith. The trial court dismissed everything, but the appeals court split its decision. Legal malpractice claims cannot transfer to an adversary even through bankruptcy, the court said.
However, Anderson’s direct accusations against Farmers for insurance bad faith and statutory violations may proceed. The court found these complaints target Farmers’ actions rather than assigned counsel’s conduct. The case returns to the trial court to sort out which specific claims may proceed.
