BROTHERS, HAWN & COUGHLIN CAUSE GEICO INSURANCE TO PAY BENEFITS OWING TO ITS INSURED

A young man who suffered serious injuries, when he was driving an automobile insured by Geico Insurance, was denied PIP benefits available under the insurance policy.   PIP benefits are amounts which an insurance company is obligated to pay for medical expense and loss of wages incurred in a motor vehicle accident, regardless of who is at fault.

Brandon Sheptow was driving his mother=s car with her permission, when another driver failed to yield the right of way, and ran into the car.  Geico refused to pay PIP benefits because Sheptow was not living in the home of his mother at the time of the collision.  In denying coverage, Geico ignored an Oregon statute which requires that any person who is driving a motor vehicle in this state, with the permission of the owner, is an insured under the policy.  Instead, Geico argued that an extension of coverage to family members living at home was actually a limitation on coverage, and if a family member does not live at home, he or she is not covered.

Sheptow came to attorney Bruce Brothers after other attorneys had refused to assist him.  Brothers decided that what Geico was doing was wrong, and filed suit against Geico.  The trial court agreed with Brothers, Geico appealed and Geico lost on appeal.  Geico will be obligated to pay both the PIP benefits owing and the attorney fees incurred by Sheptow. 

After Brothers filed his case, he was contacted by numerous other attorneys across the state who had clients in the same circumstance.  They had been injured when driving a vehicle insured by Geico and it refused to provide benefits because the injured person was not living with the owner of the car.  Geico insureds across the state of Oregon will benefit from this decision.

Geico, through its green lizard, talks about how much money can be saved by changing to Geico.  What that company does not tell you is that if you are injured, it will do everything possible to avoid paying the benefits to which you are entitled.  Geico told its insured that no benefits were available for the injuries suffered by Brandon Sheptow.  The Oregon Court of Appeals said otherwise, agreeing with the position taken by Brothers, Hawn & Coughlin which provided services without payment by their client in anticipation of ultimately being paid by Geico for its wrongful denial.

The Court of Appeals opinion is here: Sheptow v. Geico, OrApp # A144862 (10/12/2011)