Court Denies Farmers Insurance’s Motion to Bifurcate Lawsuit, Upholds Plaintiffs’ Claims


(USA Herald) In a groundbreaking ruling, a court has denied Farmers Insurance Company of Arizona’s motion to bifurcate a lawsuit filed by Barbara Stein and Stuart Stein, delivering a blow to the insurance giant. The court’s decision upholds the claims made by the plaintiffs and brings to light alleged unlawful practices that have far-reaching implications for Farmers Insurance policyholders and the public.

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Uncovering Unlawful Denial of Insurance Coverage

Barbara Stein and Stuart Stein found themselves entangled in a legal battle with Farmers Insurance after the company denied them insurance coverage following an automobile collision with an uninsured driver. The incident occurred in September 2018 in Colorado Springs, Colorado, resulting in the plaintiffs sustaining permanent injuries that required multiple surgeries. They maintain that the uninsured driver was solely responsible for the collision and claim that Farmers Insurance wrongfully denied their coverage.

Farmers Insurance Faces Breach of Contract and Bad Faith Allegations

The Steins’ case alleges a breach of contract by Farmers Insurance for its failure to promptly investigate the collision and adequately compensate the plaintiffs under the uninsured motorist provisions of their insurance policy. Additionally, the plaintiffs assert claims for breach of the implied covenant of good faith and fair dealing. Seeking justice, the Steins demand declaratory relief, contractual damages, attorney’s fees, and costs, including compensation for personal injuries and consequential damages, such as punitive damages.

Implications for Farmers Insurance Policyholders and the Public at Large

The court’s denial of Farmers Insurance’s motion to bifurcate has far-reaching implications for Farmers Insurance policyholders and the general public. It sheds light on the need for policyholders to be aware of their rights and vigilant in their interactions with insurance companies. This case emphasizes the importance of holding insurance companies accountable for their actions and ensuring fair treatment for policyholders.

The court determined that bifurcation was not necessary based on several factors. Firstly, even under the relevant New Mexico law, bifurcation is not mandatory when a plaintiff alleges claims beyond the insurer’s failure to pay. Additionally, the allegations of bad faith conduct by the defendant, including misrepresentation and inadequate investigation, are intertwined with the contractual claim and would create confusion if separated.

What Policyholders Can Learn from Barbara Stein and Stuart Stein’s Case

Farmers Insurance policyholders must be proactive in protecting themselves from similar issues encountered by the plaintiffs in this lawsuit. Reviewing the terms and conditions of their insurance policies is paramount, along with being aware of their rights as policyholders. By staying informed and assertive, policyholders can safeguard themselves against potential unfair treatment and denial of rightful compensation.


The court’s decision to deny Farmers Insurance’s motion to bifurcate the lawsuit brought by Barbara Stein and Stuart Stein serves as a landmark ruling, upholding the plaintiffs’ claims and denouncing alleged misconduct by the insurance company. This case not only carries implications for Farmers Insurance policyholders but also highlights the broader issue of ensuring fairness and accountability in the insurance industry. By staying informed and vigilant, policyholders can protect themselves from potential mistreatment and assert their rights as consumers.

The case is Stein v. Farmers Ins. Co. of Ariz., No. 19-CV-410-DMS, in the UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

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By Samuel Lopez | Legal News Contributor for USA Herald