Yearin Law Secures $598,790 Verdict in Insurance Dispute Over Family Step-Down Clause
A Scottsdale personal injury law firm won a significant verdict against Allstate after challenging a controversial family step-down clause that limited coverage for an engaged couple involved in a serious car accident.
Yearin Law secured a $598,790 judgment on behalf of a personal injury client following a bench trial stemming from a 2024 motor vehicle collision. The case centered around a serious accident that occurred on February 14, 2024, when the firm's client was a front-seat passenger involved in a high-impact crash. The driver, who was making an improper left turn, failed to yield to oncoming traffic, resulting in a violent collision captured on dash cam video.
The client suffered multiple injuries, including herniated cervical discs, a lumbar injury, shoulder trauma, and a concussion. Her treatment included chiropractic care, physical therapy, and spinal injections, with medical expenses totaling over $45,000. Despite the at-fault driver carrying a $50,000 liability policy limit with Allstate, the insurer only offered $25,000, invoking a controversial family step-down clause in its policy.
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 that the clause did not apply because the parties were not legally related. He also argued that such limitations are inconsistent with the reasonable expectations of policyholders.
When Allstate refused to tender the remaining $25,000 to resolve the claim, Yearin Law Office filed suit and served the at-fault driver. Allstate then failed to file a timely response, leading to an application for the entry of default which was granted by the court. 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 the defense's claims that her spinal injuries predated the accident. The physician provided detailed testimony using MRI images, confirming 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 the medical evidence and lasting impact on the client's life. The court sided with Yearin's arguments, awarding the full amount requested. This verdict sends a clear message about the consequences insurers may face when they undervalue claims and deny coverage based on ambiguous policy language. The firm now plans to pursue a bad faith insurance claim on behalf of their client.