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MADISON - ST. CLAIR RECORD

Friday, April 26, 2024

Auto repair shop sues insurance company, claims they failed to pay out proper settlement

State Court

EDWARDSVILLE - Gentry Auto Repair has filed suit against Pekin Insurance Company over claims the latter in bad faith refused to offer a reasonable settlement following a theft.

Gentry Auto Repair, of East Alton, filed suit Feb. 21 in Madison Circuit Court, accusing the insurance company of failing to cover the claim, forcing the garage to litigate, and breaching a contract between the two arties.

In its claim Gentry notes that it had a number of policies, including one for up to $500,000 for property damage and garage liability and a $1 million/$3 million policy for auto coverage.

Over two days, Feb. 23 and 24, the policy was in full force with all premiums paid, according to the suit. At that time the company "sustained extensive theft damages to the buildings and personal property."

After the auto repair shop submitted a claim to cover the damages, the insurance company has refused to offer a reasonable settlement despite numerous requests, according to the suit.

The insurance company acted in bad faith, and was vexatious and unreasonable in denying the clam, it is claimed.

Gentry is asking for the full amount of the damage caused to the company, punitive damages, and an additional not more than 60 percent of the judgment.

The auto company was forced to litigate a claim when the insurance company knows it has no "substantive grounds" for a denial of the requested amount, it is alleged.

Plaintiff is represented by Grey Chatham of Chatham & Baricevic in Belleville. 

Madison Circuit Court case number 2020-L-226.

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