Young v. Allstate Insurance Co.

Allstate Insurance Co. (Allstate) (defendant) devised the Claims Core Process Redesign (CCPR) plan to increase profits. The plan involved dissuading personal-injury claimants from retaining counsel, calculating unreasonably low settlement offers, and fully litigating claims if claimants hired attorneys or rejected settlement offers. Priscilla Young (plaintiff) was injured when her car was rear-ended by a driver insured by Allstate. Allstate contacted Young, promised to treat her fairly, and told her she did not need a lawyer. Young rejected Allstate’s settlement offer of less than her medical expenses and filed an action. An arbitrator awarded damages of nearly eight times Allstate’s offer. Allstate appealed and made the same low offer pursuant to Hawaii Rule of Civil Procedure (HRCP) 68. Young won at trial and was awarded nearly 40 times Allstate’s offer. Young sued Allstate, alleging that Allstate abused process by making unreasonably low settlement offers; appealing the arbitration award and forcing a trial; raising affirmative defenses in the answer; making an offer pursuant to HRCP 68; and opposing Young’s motions for attorneys’ fees, costs, and prejudgment interest. Young claimed that Allstate improperly used process to implement the CCPR plan and engaged in “scorched earth litigation tactics” to punish Young and send a message to other claimants. The court granted Allstate’s motion to dismiss Young’s abuse-of-process claim for failure to state a claim upon which relief could be granted. Young appealed.