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(314) 500-HURTVexatious refusal in Missouri are penalties against the injured person’s insurance company and is thus different than
bad faith.
Vexatious means “without reasonable or probable cause or excuse.”
See V.A.M.S. §§ 375.296, 375.420; Progressive Preferred Ins. Co. v. Reece, 498 S.W.3d 498 (Mo. Ct. App. W.D. 2016);
Vantage Credit Union v. Chisholm, 447 S.W.3d 740 (Mo.Ct. App. E.D. 2014).
Under § 375.420 20% of the first $1,500 of the loss and 10% of the loss in excess of $1,500 together with
reasonable attorney’s fees, in addition to the amount of recovery owing under the policy.
Attorney fees can be assessed in a vexatious refusal to pay case even if the jury does not assess any penalty
damages under the statute. DeWitt.
It is kind of funny that courts say the trial court is an expert on the value of legal services – however, a jury
is not. See Howard Const. Co. v. Teddy Woods Const. Co., 817 S.W.2d 556 (Mo. Ct. App. W.D. 1991).
Answer: The fact that the insurance company pays, paid, or eventually pays all or part of the amount owing under
the policy does not eliminate a claim under § 375.420.
The Supreme Court in Dhyne, in response to such an argument, stated:
Adopting State Farm’s argument would permit an insurance company to refuse payment and avoid liability under
section 375.420 by simply paying prior to trial. Such an interpretation would, from a practical standpoint,
eliminate section 375.420.
If you have questions regarding insurance companies and vexatious refusal, call us at (314) 500-HURT.
Founder | Injury Attorney
Gary Burger has dedicated his career to standing up against bullies. The founder and principal attorney of Burger Law | St. Louis Personal Injury Lawyer has helped hundreds of Missouri and Illinois individuals and families recover th …
Years of experience: 30 years
Location: St. Louis, MO
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