Case Intel:
- Wanda Gomez claims Old Republic Insurance abandoned its duty to a truck driver after a devastating 2022 collision
- A $2 million settlement offer was ignored, leading to a $7.5 million judgment that could have been avoided
- The insurer now faces federal court accusations of bad faith and negligence in Connecticut
The collision lasted seconds. The legal fallout is now stretching into its third year, with millions of dollars hanging in the balance and an insurance company facing federal court accusations that it spectacularly failed its own policyholder.
Wanda Gomez has taken her fight against Old Republic Insurance Co. to Connecticut federal court, demanding the carrier pay a $7.5 million judgment she won against a food distributor’s truck driver. But this isn’t just about money—it’s about an insurance company that allegedly walked away from its most basic obligations when its customer needed protection most.
The chain of events that led to this federal showdown:
- March 2022: Commercial box truck driver Keith Claiborne, employed by City Line Distributors, collides with Gomez’s vehicle
- December 2022: Gomez files negligence lawsuit in Connecticut state court against Claiborne and City Line
- June 2024: Gomez offers to settle for $2 million—within Old Republic’s policy limits
- Summer 2024: Old Republic counters with just $40,000, refusing to pay policy limits
- January 2025: Jury awards Gomez $5.7 million verdict
- March 2025: Court enters judgment for nearly $7.5 million
- This week: Gomez sues Old Republic in federal court as assignee of Claiborne’s rights
According to the federal complaint filed Tuesday in the U.S. District Court for the District of Connecticut, Old Republic’s failures were both systematic and devastating for its insured.
The court filing reveals that Old Republic “delegated its responsibilities to a third-party administrator, who in turn retained defense counsel, and Old Republic Insurance Co. thereafter abdicated meaningful oversight.” This hands-off approach, Gomez alleges, “resulted in the claim being mishandled and the insureds being left unprotected.”
Perhaps most damaging to Old Republic’s position: the company allegedly failed to notify City Line’s excess insurer, Everest National Insurance Co., about the claim until July 2024—months after Gomez had offered to settle within the primary policy limits. Everest’s policy provided up to $10 million in additional coverage, but the delayed notification prompted Everest to file its own lawsuit in August, seeking to escape coverage based on breach of notice conditions.
The complaint accuses Old Republic of acting “purposely and with malicious intent” and with “willful disregard for the interest of its insured.”
