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STRAWN v. FARMERS INS. CO. OF OREGON

(CC 9908-09080; CA A131605; SC S057520 (Control), S057629).

258 P.3d 1199 (2011)

350 Or. 336

Mark STRAWN, on his own behalf and as representative of a class of similarly situated persons, Petitioner on Review/Respondent on Review, v. FARMERS INSURANCE COMPANY OF OREGON, an Oregon stock insurance company; Mid-Century Insurance Company, a foreign corporation; and Truck Insurance Exchange, a foreign corporation, Respondents on Review/Petitioners on Review, and Farmers Insurance Group Inc., a foreign corporation, Defendant.

Supreme Court of Oregon.

Decided May 19, 2011.

Attorney(s) appearing for the Case

Kathryn H. Clarke , Portland, argued the cause for petitioner on review/respondent on review Strawn. With her on the briefs were Richard S. Yugler , David N. Goulder , and Lisa T. Hunt , Landye Bennett Blumstein LLP, Portland.

Theodore J. Boutrous, Jr. , Gibson, Dunn & Crutcher LLP, Los Angeles, California, argued the cause for respondents on review/petitioners on review Farmers Insurance Company of Oregon et al. James N. Westwood , Stoel Rives LLP, Portland, filed the brief for respondents on review/petitioners on review Farmers Insurance Company of Oregon et al. With him on the brief were P.K. Runkles-Pearson , Theodore J. Boutrous, Jr. and Thomas H. Dupree, Jr. , Gibson, Dunn & Crutcher LLP, Los Angeles; and David L. Yohai and Gregory Silbert , Weil Gotshal Manges LLP, New York.

Meagan A. Flynn , Portland, filed briefs in support of the petition for review on behalf of amicus curiae Oregon Trial Lawyers Association.

Brian S. Campf , Portland, filed a brief on behalf of amicus curiae Oregon Trial Lawyers Association.

Andrew M. Schlesinger , West Linn, filed a brief on behalf of amicus curiae United Policyholders.

Thomas M. Christ , Cosgrave Vergeer Kester LLP, Portland, filed a brief on behalf of amicus curiae Oregon Association of Defense Counsel.

Brian T. Hodges , Bellevue, Washington, filed a brief on behalf of amicus curiae Pacific Legal Foundation. With him on the brief were Deborah J. La Fetra and Timothy Sandefur , Sacramento, California.

Before DE MUNIZ, Chief Justice, and DURHAM, KISTLER, BALMER, WALTERS, and LINDER, Justices.

LINDER, J.

Plaintiff Mark Strawn filed a class action against defendants Farmers Insurance Company of Oregon, Mid-Century Insurance Company, and Truck Insurance Exchange (collectively, Farmers).1 The complaint alleged that Farmers had breached its contractual obligations and committed fraud by instituting a claims handling process that arbitrarily reduced payments for reasonable medical benefits owed under its automobile insurance policies...

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