IN THE DISTRICT COURT OF CARTER COUNTY
STATE OF OKLAHOMA
MATTHEW SHEEHY,
Plaintiff,
v.
Shilynn Setser, personal representative of the Estate of Dave Lucas, deceased, FARMERS INSURANCE EXCHANGE FARMERS INSURANCE COMPANY, INC., and ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY,
Defendants.
Case No.: CJ-2026-108
PETITION¹
Plaintiff Matthew Sheehy ("Plaintiff"), for his cause of action against Defendants Shilynn Setser, personal representative of the Estate of Dave Lucas, deceased, ("Lucas"), Farmers Insurance Exchange and Farmers Insurance Company, Inc. (collectively, "Farmers") and Allstate Fire and Casualty Insurance Company ("Allstate"), states as follows:
JURISDICTION AND VENUE
1. Plaintiff is a citizen of the State of Oklahoma and resides in Carter County, Oklahoma.
2. Defendants Farmers Insurance Company, Inc. and Farmers Insurance Exchange, at all times pertinent to this action, do business in Carter County in the State of Oklahoma.
¹ Plaintiff previously filed an action arising out of the March 11, 2023 collision within the applicable two-year statute of limitations. That action was dismissed otherwise than on the merits. This action is refiled within one year of that dismissal pursuant to 12 O.S. § 100 and is therefore timely.
3. Farmers Insurance Exchange is an unincorporated association made up of policyholders who are citizens of numerous states, including Oklahoma. Farmers Insurance Exchange is the parent company of Farmers Insurance Company, Inc. Farmers Insurance Exchange is a reciprocal exchange and Farmers Insurance Company, Inc. is part of said reciprocal exchange. The adjusters who handle claims, including Plaintiffs', are employed by Farmers Insurance Exchange. It is alleged Farmers Insurance Exchange pays the expenses, including claims expenses and indemnity payments, and losses of Farmers Insurance Company, Inc. Therefore, Farmers Insurance Company, Inc. is simply the instrumentality of Farmers Insurance Exchange. As a result, the separation between these two entities may be disregarded as one for the purpose of breach of contract and bad faith claims.
4. As an unincorporated association, Farmers Insurance Exchange is deemed to be a citizen of each state in which each of its members reside.
5. Allstate Fire and Casualty Company is a corporation organized under the laws of the State of Illinois with headquarters and principal place of business in that state. Allstate is licensed and engaged in the business of insurance in the State of Oklahoma.
6. Shilynn Setser, personal representative of the estate of Dave Lucas, deceased, is a citizen of the State of Oklahoma. Dave Lucas was a resident of Carter County at the time of his death.
7. The substantial events that give rights to this lawsuit occurred in Carter County, Oklahoma.
8. Venue is proper pursuant to 12 O.S. §§ 137 and 141.
FACTUAL BACKGROUND
9. On March 11, 2023, Plaintiff was involved in a motor vehicle collision at the intersection of North Rockford Road and Merrick Drive in Ardmore, Oklahoma, when his vehicle was struck by a vehicle operated by Defendant Lucas.
10. The collision was caused by the negligence of Lucas, who failed to stop for a red traffic light before entering the intersection.
11. As a direct result of Lucas’s negligence, Plaintiff sustained significant bodily injuries.
12. At the time of the collision, Lucas was insured by State Farm Mutual Automobile Insurance Company ("State Farm") under a policy with bodily injury limits of $25,000.00.
13. At the time of the collision, Plaintiff was an insured under an automobile policy issued by Farmers, which included Uninsured/Underinsured Motorist ("UM/UIM") coverage.
14. Also at the time of the collision, Plaintiff was a resident of his mother’s household and was therefore an insured entitled to UM/UIM benefits under her automobile policy issued by Allstate.
15. On or about March 28, 2024, Plaintiff’s counsel sent a letter of representation to State Farm requesting the applicable coverages and policy limits of its insured, Lucas.
16. On or about March 29, 2024, State Farm responded, disclosing the applicable policy information and advised Lucas limits of $25,000.00.
17. On or about July 2, 2024, Plaintiff’s counsel sent a letter of representation to Farmers regarding Plaintiff’s UM/UIM claim.
18. On or about July 3, 2024, a representative from Farmers, Yuri Masteller, responded advising that there was a “coverage issue” and that a recorded statement would be necessary if Plaintiff was asserting coverage.
19. On or about July 8, 2024, Plaintiff’s counsel sent a letter of representation to Allstate, advising that Plaintiff would be making a claim for UM/UIM benefits under his mother’s policy.
20. On or about July 13, 2024, and July 15, 2024, Allstate sent letters to Plaintiff’s counsel acknowledging the UM/UIM claim.
21. On or about August 16, 2024, a statement was provided by Holly Sheehy in response to Farmers’ July 3, 2024 request for a recorded statement. A copy of the statement was requested but was never provided to Plaintiff’s counsel.
22. On or about August 27, 2024, Farmers sent Plaintiff’s counsel a letter enclosing medical authorization forms to obtain Plaintiff’s treatment records.
23. On or about January 3, 2025, Farmers sent a letter to Plaintiff’s counsel requesting an update on Plaintiff’s injury and treatment status.
24. On or about January 7, 2025, Plaintiff’s counsel responded to Farmers, advising that Plaintiff had undergone knee surgery on May 28, 2024, and that counsel was in the process of collecting the related medical records and bills.
25. On or about January 23, 2025, having determined his damages exceeded the at-fault driver’s liability limits, Plaintiff’s counsel sent a formal settlement demand to State Farm, demanding a tender of Lucas’s $25,000 policy limits.
26. On or about February 4, 2025, State Farm tendered the $25,000.00 policy limits.
27. On or about February 28, 2025, Plaintiff's counsel sent formal UM/UIM settlement demands to both Allstate and Farmers. Plaintiff's counsel also informed both carriers that policy limits in the amount of $25,000.00 had been previously offered by State Farm and requested the carriers to indicate whether they intended to waive subrogation or substitute payment pursuant to 12 O.S. § 3636.
28. On or about March 4, 2025, Farmers responded to the demand letter, stating that it would waive its subrogation rights.
29. On or about March 5, 2025, Allstate sent a letter acknowledging receipt of Plaintiff's demand and advised it was being assigned to an adjuster, Edwin Matt, for review.
30. On or about March 28, 2025, Farmers sent a subsequent letter stating it neither accepted nor rejected Plaintiff's demand and requested additional information to evaluate the claim.
31. On or about April 8, 2025, Plaintiff's counsel responded to Farmers, directing Farmers to use the previously provided medical authorization to request any additional records it deemed necessary to perform a good faith evaluation of Plaintiff's claim.
32. That same day, Allstate communicated an initial settlement offer to Plaintiff's counsel.
33. On May 7, 2025, Plaintiff's counsel sent a letter to Allstate acknowledging the offer but advising that it was insufficient to fully compensate Plaintiff for his damages.
34. On or about May 9, 2025, Farmers sent a letter acknowledging receipt of certain medical records and indicating that it was still pending additional documents.
35. Following its May 9, 2025 correspondence, Farmers failed to provide a substantive response to Plaintiff’s UM/UIM demand despite Plaintiff’s counsel’s repeated efforts to communicate with Farmers so that progress could be made on the claim.
36. On June 19, 2025, Plaintiff’s counsel sent a letter to Farmers requesting an update on the status of its review. Farmers did not respond.
37. On July 9, 2025, Plaintiff’s counsel sent another letter to Farmers, again requesting a status update and noting that while Farmers had waived subrogation, it had failed to respond to the demand for payment under the policy. Farmers did not respond.
38. On August 28, 2025, at Allstate’s request, Plaintiff’s counsel sent Plaintiff’s personal impact statement to assist with its ongoing evaluation of the UIM claim.
39. To date, neither Farmers nor Allstate has tendered an amount sufficient to fully compensate Plaintiff for the damages sustained in the collision.
COUNT I: NEGLIGENCE
Against Estate of Lucas
40. Plaintiff hereby incorporates each of the preceding paragraphs as if set forth fully herein.
41. Lucas owed a duty to Plaintiff to operate his vehicle in a reasonable and prudent manner using ordinary care.
42. Lucas breached this duty and was negligent in failing to operate his vehicle in a reasonable and prudent manner.
43. Lucas failed to stop at a red light at the intersection of Merrick Drive and North Rockford. As Plaintiff lawfully entered the intersection upon receiving a green light, he was struck by Lucas.
44. Lucas was negligent per se by violating 47 O.S. § 11-204.
45. Plaintiff did not cause or contribute to the collision in any way whatsoever.
46. As a result of Lucas's negligence, Plaintiff sustained bodily injuries, pain of body and mind, loss of earnings, loss of quality of enjoyment of life, and has incurred expenses for medical attention, with general and special damages each totaling in excess of $75,000.00.
COUNT II: BREACH OF CONTRACT—UM/UIM BENEFITS
Against Defendants Farmers and Allstate
47. Plaintiff hereby incorporates each of the preceding paragraphs as if set forth fully herein.
48. At the time of the collision, Plaintiff was an insured under policies issued by both Farmers and Allstate, which provided UM/UIM coverage for which premiums had been paid.
49. Lucas did not have sufficient liability insurance to fully compensate Plaintiff for his bodily injuries sustained in the collision, and thus Lucas was an underinsured motorist.
50. Pursuant to the terms of the policies, Allstate and Farmers are to compensate an insured person for all sums that the insured person is legally entitled to recover as damages from the owner or operator of an uninsured or underinsured motor vehicle because of the bodily injuries Plaintiff sustained.
51. Plaintiff made a claim to Allstate and Farmers for UM/UIM and other benefits as an insured person legally entitled to recover damages from the operator of an underinsured motor vehicle because of the bodily injuries Plaintiff sustained in the collision.
52. All conditions precedent to both Allstate's and Farmers' liability under the policies had been performed including payment of all premiums necessary to keep the policies in effect and the presentation of claims by insured persons for bodily injury damages under the UM/UIM coverage.
53. Allstate and Farmers failed and refused to fully compensate Plaintiff for the bodily injuries he sustained in the collision as a result of the negligence of Lucas.
54. Allstate and Farmers materially breached the terms of the insurance contracts with Plaintiff by refusing to pay all benefits owed under the contract.
COUNT III: BREACH OF THE DUTY OF GOOD FAITH AND FAIR DEALING
Against Defendants Farmers and Allstate
55. Plaintiff hereby incorporates each of the preceding paragraphs as if set forth fully herein.
56. Allstate and Farmers owe Plaintiff, its insured, a duty to deal fairly and in good faith with him.
57. Allstate and Farmers did not deal fairly and in good faith with Plaintiff.
58. Allstate and Farmers failed to perform a proper investigation and coverage determination in regard to the claims made by Plaintiff.
59. Allstate and Farmers have knowingly and intentionally failed to engage in proper claims handling practices and failed to fully and reasonably compensate its insured in an amount promised for losses covered under its automobile insurance policies.
60. Allstate and Farmers engaged in these improper claims practices knowing that its insured would suffer financial harm.
61. Allstate and Farmers deprived Plaintiff of the very protection provided for in the automobile policies.
62. Allstate and Farmers put their interests in maximizing financial gains, and limiting disbursements above the interests of its insured, Plaintiff.
63. Allstate utilizes a computer software program called "Colossus" that is designed and customized to save Allstate money on UM/UIM claims to the detriment of its policyholders.
64. Allstate’s and Farmers’ bad faith conduct have forced Plaintiff to file a lawsuit to obtain the benefits he is owed.
65. As a consequence of Allstate's and Farmers' breach of the duty of good faith and fair dealing, Plaintiff sustained damages, including deprivation of benefits owed under the automobile policies, attorney fees and litigation costs, in excess of seventy-five thousand dollars ($75,000.00).
66. The conduct of Allstate and Farmers was intentional, willful, malicious, and/or in reckless disregard of the rights of others.
67. The actions of Allstate and Farmers during the handling of Plaintiff's claims demonstrate they intentionally, and with malice, breached their duty to deal fairly and in good faith. The actions of Allstate and Farmers were intentional, malicious and consistent with an overall collective corporate goal of increasing profits through the systematic reduction or avoidance of claims. Plaintiff therefore seeks punitive damages in an amount sufficient to deter such conduct and serve as an incentive for Allstate and Farmers, and other insurance companies, to abide by its obligation to deal fairly and in good faith with insureds.
PRAYER FOR RELIEF
WHEREFORE, premises considered, Plaintiff Matthew Sheehy seeks damages against Defendants Shilynn Setser, personal representative of the Estate of Dave Lucas, Allstate Fire and Casualty Insurance Company, Farmers Insurance Company, Inc.; and Farmers Insurance Exchange, in an amount in excess of $75,000.00, together with interest, court costs, attorney fees and other relief, as the Court deems just and equitable.
Respectfully submitted,
J. Revell Parrish, OBA #30205
GLASS & TABOR, LLP
1601 36th Ave. NW
Norman, OK 73072
Telephone: (405) 360-9700
Facsimile: (405) 360-7902
Email:
[email protected]
– and –
Steve Oliver, OBA #18436
LITTLE OLIVER GALLAGHER, PLLC
One West Main
Ardmore, OK 73401
Telephone: (580) 224-0900
Email:
[email protected]
Attorneys for Plaintiff
ATTORNEY LIEN CLAIMED
JURY TRIAL DEMANDED
