Yearin Law announced a $598,790 judgment for a client injured in a February 14, 2024 motor vehicle collision, following a bench trial that rejected Allstate's attempt to limit coverage under a family step-down clause. The verdict sends a clear signal about the consequences insurers may face when they undervalue claims based on ambiguous policy language.
The case arose from a high-impact crash captured on dash cam video, showing the at-fault driver making an improper left turn and failing to yield. The client, a front-seat passenger, suffered herniated cervical discs, a lumbar injury, shoulder trauma, and a concussion. Medical expenses exceeded $45,000 for chiropractic care, physical therapy, and spinal injections.
Despite the at-fault driver carrying a $50,000 liability policy limit with Allstate, the insurer offered only $25,000, citing a controversial family step-down clause. Allstate argued that because the client and the driver were engaged and living together, coverage was limited to Arizona's minimum statutory limits. Personal injury attorney Don Yearin, founder of Yearin Law, challenged this interpretation, asserting the clause did not apply since the parties were not legally related. He argued such limitations are inconsistent with policyholders' reasonable expectations that coverage applies equally regardless of familial relationships.
When Allstate refused to tender the remaining $25,000, Yearin Law Office filed suit and served the at-fault driver. Allstate failed to file a timely response, leading to a default judgment. After oral arguments on August 18, 2025, Judge Mary C. Cronin denied Allstate's motion to set aside the default, setting the stage for a trial on damages.
At trial, the client testified about the daily impact of her injuries, while her treating physician, a board-certified medical expert, rebutted defense claims that her spinal injuries predated the accident. Using MRI images, the physician confirmed the injuries were consistent with acute trauma rather than degeneration. Allstate's legal team downplayed the severity and permanence of the injuries, suggesting damages should be capped at $100,000. Yearin argued for a full and fair verdict based on medical evidence and the lasting impact on the client's life. The court awarded the full amount requested — $598,790.
"This case could have settled for a fraction of the verdict amount," said Don Yearin. "Allstate had multiple opportunities to resolve it fairly, but instead chose to rely on a questionable policy exclusion. We look forward to pursuing a bad faith insurance claim on behalf of our client."
