The insurance coverage large GEICO is going through a relatively uncommon declare, and one that would see it required to pay a Missouri girl $5.2 million after she stated she contracted a sexually transmitted illness whereas having intercourse within the automotive of a person insured by the corporate.
The Related Press revealed that earlier this week, a three-judge panel of the Missouri Court docket of Appeals on Tuesday upheld a Jackson County Court docket’s choice that affirmed an arbitrator’s discovering that the girl was entitled to the award.
In response, GEICO has filed a federal lawsuit on the grounds that the girl’s declare isn’t lined by the person’s insurance coverage coverage. The Related Press famous that in an e mail despatched on Thursday, the corporate stated the lawsuit will set up whether or not “there’s protection on this matter.”
In keeping with court docket paperwork, the girl (recognized solely as M.O.) and the person have been in a relationship once they had intercourse within the man’s automotive. She claims that she contracted HPV (human papillomavirus) on account of the sexual exercise as a result of the person didn’t inform her he had the illness. In February 2021, M.O. notified GEICO that she deliberate to hunt a $1 million insurance coverage settlement in opposition to the person and argued that his auto insurance coverage supplied protection for her accidents and losses.
The Related Press famous that court docket paperwork reveal that GEICO refused the settlement underneath the grounds that the girl’s declare didn’t occur as a consequence of regular use of the automobile. An arbitrator later decided she ought to be awarded $5.2 million for damages and her accidents. M.O. then filed a movement in Jackson County Court docket, trying to verify the award.
The court docket paperwork additionally reveal that GEICO claimed it didn’t know the person and girl had entered into arbitration and that the insurer sought to intervene within the court docket case when it discovered. The corporate argued that the arbitration award was reached by way of collusion and fraud, violated its rights to due course of and was unenforceable.
The Related Press revealed that the court docket paperwork present that the decrease court docket rejected GEICO’s requests and confirmed the award, prompting the insurance coverage firm to enchantment as a result of it stated it didn’t have a “significant alternative” to defend its pursuits. In the meantime, the appeals court docket discovered that GEICO didn’t have the fitting to “re-litigate” the problems after the award had been affirmed.