The South Dakota Supreme Court affirmed a jury verdict against American Family Insurance in Biegler v. American Family Ins., 2001 S.D. 13, 621 N.W.2d 592. The original verdict is discussed below. The Supreme Court reduced the amount of the judgment to $165,000, which resulted in a payment of over $200,000 after allowing for interest and costs.

The South Dakota Supreme Court particularly affirmed a count of deceit, which was directed at how American Family handled this claim once it got it in house. The Supreme Court described American Family’s conduct as trying to “sandbag” its insured.