21SA187 – Skillet v. Allstate, 22CO12

On July 3, 2020, Alexis Skillett was injured in a car accident and filed an underinsured-motorist claim under her Allstate policy.
Allstate assigned employee adjuster Collin Draine to handle the claim; Draine denied coverage and Allstate denied benefits.
Skillett sued Allstate and Draine in Colorado state court, alleging statutory bad-faith under Colo. Rev. Stat. §§ 10-3-1115 to -1116 against both defendants.
Allstate removed the case to federal court, asserting Draine was fraudulently joined because the statutory cause of action applies only to insurers.
The federal district court certified the legal question whether an insurer’s employee adjuster may be personally liable under §§ 10-3-1115–1116; Colorado Supreme Court accepted and resolved the conflict in precedent.
The Colorado Supreme Court held that the statutory cause of action for unreasonable delay or denial of benefits proceeds against the insurer, not an individual adjuster acting solely as an employee.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether an insurance-company employee who adjusts a claim may be personally liable under Colo. Rev. Stat. §§ 10-3-1115–1116	Sections use the term “person” and § 10-3-1102(3) defines “person” to include adjusters, so adjusters may be sued	Statutes create a remedy for claims against insurers; adjusters acting solely as employees are not parties to the policy and thus not liable	No — statutory bad-faith claims under §§ 10-3-1115–1116 lie against the insurer, not an individual adjuster

Riccatone v. Colorado Choice Health Plans, 315 P.3d 203 (Colo. App. 2013) (court of appeals concluded the statutes furnish a cause of action only against insurers)
Dutcher v. Matheson, 733 F.3d 980 (10th Cir. 2013) (fraudulent joinder doctrine governs removal where a non-diverse defendant cannot be liable)
Gale v. City & County of Denver, 500 P.3d 351 (Colo. 2020) (de novo review of certified questions to the Colorado Supreme Court)
Am. Fam. Mut. Ins. Co. v. Barriga, 418 P.3d 1181 (Colo. 2018) (statutory interpretation principles regarding §§ 10-3-1115 and 10-3-1116 operate together)
Pineda-Liberato v. People, 403 P.3d 160 (Colo. 2017) (canons: give plain meaning effect, avoid superfluity and absurd results)