OKLAHOMA CITY — Oklahoma Supreme Court heard oral arguments for under an hour on April 27 in what the Attorney General considers "maybe the biggest insurance fraud in state history."
Attorney General Gentner Drummond has sought to join a lawsuit accusing State Farm of not being there for Oklahomans like a good neighbor.
The case involves a Broken Arrow couple 2 News Oklahoma previously interviewed suing the insurance giant over allegations that it systematically lowballs or flat-out denies payout claims of storm damage to homes across the state.
- Previous coverage>>> AG Drummond making a motion to get involved in alleged State Farm scheme
The husband, Tulsa police lieutenant Billy Hursh, spoke with Oklahoma City media and 2 News after the session ended.
"When we were trying to get our roof fixed in the first place, (with) every contractor we spoke to they would say, 'Yep you definitely need a new roof. You've got serious hail damage.' And they'd (ask) who is your insurer? And we'd say State Farm. And they would go, 'Ugh'."
"We're not going to lose our house, but it's forced us to rethink our financial situation going forward for decades," Hursh added.
AG Drummond took on the case to argue that potentially hundreds of Oklahomans are impacted by State Farm’s alleged record-breaking fraud, and that it breaks at least three laws: Oklahoma Consumer Protection Act, Oklahoma RICO law, and Oklahoma Deceptive Trade Practices Act.
Solicitor General Garry Gaskins said to justices during the hearing that State Farm showed a pattern of paying settlements of millions of dollars when sued, but paid nothing when homeowners didn't sue.
"I litigated for 30 years," Drummond said after the hearing. "That tells me there's a custom in practice of, 'Let's take our bets. Let's take advantage of as many people as we can. The few that sue us, we'll settle.'"
However, lead attorney representing State Farm Mithun Mansinghani told justices Drummond has no authority over such a case brought on by individuals, and only the Oklahoma Insurance Commissioner can take charge.
State Farm sent 2 News its webpage dedicated to responding to Oklahoma litigation and sent me a statement after the hearing:
"State Farm helps people, follows the law, and holds itself to the highest ethical standards. We strongly reject any allegations that suggest otherwise. Experiencing property damage can be devastating, and we work with our customers throughout their claim to help them recover. Our goal is to make sure customers get every applicable benefit their policy offers. Our Homeowner’s Policy is designed to provide some of the broadest coverage offered in the insurance industry. Over the past two years, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage to their homes and property. With 300 local independent contractor agents and hundreds of their team members dedicated to serving Oklahoma, we’re committed to helping people recover."
"This is the attorney general representing all of the State Farm policyholders who cannot afford or don't have access to an attorney," Drummond said of his decision to join the lawsuit.
The AG and Hursh said they're confident the majority of justices will allow Drummond to continue pursuing damages.
"Having to come into court isn't accountability for a multi billion dollar corporation," Hursh said. "This is so far nothing. Accountability will come when we get judgment."
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