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Valerie Richardson, a New Haven resident, has filed a federal lawsuit asserting that Liberty Mutual is liable for a $1.3 million crash verdict, following a serious rear-end collision in July 2022. The claim, now before the U.S. District Court for the District of Connecticut, stems from the insurer’s alleged negligence and bad faith in handling the initial personal injury case against its policyholder.

According to court documents, Richardson won a $1.3 million jury verdict in February 2025, which later resulted in a final judgment exceeding $1.5 million. The case was originally filed in state court and removed to federal court on Tuesday.

Richardson alleges that Liberty Mutual could and should have resolved the original lawsuit within the insured's policy limits, but instead engaged in unfair and deceptive settlement practices in violation of the Connecticut Unfair Trade Practices Act and the Unfair Insurance Practices Act.

The crash occurred when Liberty Mutual policyholder James Celentano rear-ended Richardson at a red light, causing what she describes as severe and lasting injuries, medical expenses, and a loss of both work and enjoyment of life.

In the newly filed lawsuit, Richardson claims that Liberty Mutual's internal policies prioritized reducing payouts over fairly evaluating claims, calling the company’s actions “immoral, unethical, and unscrupulous,” and harmful to both policyholders and accident victims.

Legal representation for Richardson is being handled by Michael P. D'Amico of D'Amico Law LLC, while Kevin P. Polansky of Nelson Mullins Riley & Scarborough LLP is representing Liberty Mutual.

The case is titled Richardson v. Liberty Mutual Personal Insurance Co., case number 3:25-cv-00724.