Insurance company sued for $2B over failure to settle wrongful death case

$2B lawsuit filed against insurer over delayed settlement

A widow is suing Travelers for $2 billion, claiming the company failed to settle a 2016 wrongful death case earlier—leading to a $241 million jury award and years of costly delays now under review in federal court.

CHICAGO - A federal lawsuit filed this week accuses Travelers Property Casualty Company of America of not settling a wrongful death case earlier, a decision now being challenged after a $241 million jury verdict in southern Illinois.

The case involves Prairie Farms, the company covered by the insurance policy.

What happened

The case goes back to 2016. Eric Johnson, a 64-year-old courier, was delivering strawberries packed with dry ice. Dry ice gives off carbon dioxide gas. Attorneys say that gas filled his vehicle. Johnson lost consciousness while driving and died days later.

His family later sued, and a Madison County jury awarded $241 million.

What the new lawsuit claims

Johnson’s widow has now filed a separate lawsuit against the insurance company. The claim says Travelers had chances to pay and settle the case before it reached a jury.

Attorney Patrick Salvi Jr. said Prairie Farms wanted to resolve the case earlier. 

"Prairie Farms… had a desire to resolve this case for an amount that the Johnson family would have accepted," Salvi said.

He said the case continued for years instead. 

"The result… was both the prolonging of the Johnson’s suffering… and ultimately a verdict and a judgment that caused substantial business harm to Prairie Farms," Salvi said.

Attorney Lance Northcutt said the decision about settlement money was controlled by the insurer.

"What we have now learned is that it was not Prairie Farms that refused to settle," Northcutt said. "It was the insurance company, Travelers… They essentially controlled the spigot of funds that would be provided for a settlement."

What happens next

The lawsuit was filed in the U.S. District Court for the Southern District of Illinois. The case will now move through the court process.

FOX 32 has reached out to Travelers for comment and has not yet received a response.