Joseph Frost and Heather Frost v. Progressive Direct Insurance Company

CourtDistrict Court, D. South Dakota
DecidedMarch 25, 2026
Docket1:25-cv-01002
StatusUnknown

This text of Joseph Frost and Heather Frost v. Progressive Direct Insurance Company (Joseph Frost and Heather Frost v. Progressive Direct Insurance Company) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph Frost and Heather Frost v. Progressive Direct Insurance Company, (D.S.D. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA NORTHERN DIVISION

JOSEPH FROST and HEATHER FROST, 1:25-CV-01002-CCT

Plaintiffs, ORDER GRANTING DEFENDANT’S MOTION FOR PARTIAL SUMMARY vs. JUDGMENT, DENYING AS MOOT DEFENDANT’S SECOND MOTION PROGRESSIVE DIRECT INSURANCE TO STAY DISCOVERY AND COMPANY, DEFENDANT’S OBJECTION TO THE MAGISTRATE JUDGE’S ORDER Defendant.

The defendant, Progressive Direct Insurance Company, moves for partial summary judgment on the plaintiffs’ claims of bad faith and related requests for attorney fees and punitive damages. Docket 10. It asserts that there are no material facts that create a genuine issue as to whether Progressive acted in bad faith when evaluating the value of the plaintiffs’, Joseph and Heather Frost’s, uninsured motorist insurance claims. Docket 11 at 1–2. The Frosts oppose summary judgment, alleging that Progressive engaged in an unfair and inadequate investigation of their claims and, alternatively, that additional discovery is needed for them to properly respond to Progressive’s motion. Docket 23 at 1–2. For the reasons explained below, Progressive is entitled to summary judgment on the Frosts’ bad faith insurance claims, and the current record is sufficient to address these claims. BACKGROUND I. Factual Consistent with the summary judgment standard, the Court considers all

disputed facts in a light most favorable to the nonmovants, the Frosts. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587–88 (1986). These are the pertinent facts. Joseph Frost was driving his motorcycle in Lake Norden, South Dakota, on July 3, 2023, with his wife Heather as a passenger, when a vehicle pulled out from a parking lot in front of them. Docket 14-1 at 71; Docket 24 ¶ 1. Joseph steered to avoid hitting the vehicle, which caused the motorcycle to fall on its left side and injured the Frosts. Docket 13 at 1, 9; Docket 23 at 3.

Emergency personnel examined the Frosts at the scene, but the Frosts did not go to an emergency room that day. Docket 24 ¶ 3. Progressive was notified on July 4 of the accident, and in a telephone conversation with one of its adjusters on July 5, Joseph explained the accident details and his and Heather’s injuries. Id. ¶¶ 4–6. He stated that he had pain in his left shoulder, hip, elbow, and ribs from the accident and also abrasions and road rash. Id. ¶ 6; Docket 13-1 at 12 (mentioning photos of road rash). He also indicated that the pain had improved. Docket 24 ¶ 7 (“It’s not as bad now, two days later.”).

Joseph saw Dr. Horn at the Brown Clinic on July 5 for his injuries and pain from the accident. Id. ¶¶ 8–9. At this appointment, Dr. Horn took x-rays of Joseph’s left elbow, ribs, hip, and chest, and she noted that “there could be a tiny fracture over the olecranon.” Id. ¶¶ 9–10. Otherwise, the x-rays did not indicate anything remarkable or out of the ordinary aside from soft tissue swelling also on the elbow, but Dr. Horn intended to nonetheless verify these findings with an overread. Id. ¶¶ 10–12.

On August 18, Joseph underwent an MRI on his injured elbow, which indicated an area of soft tissue bursitis and an olecranon spur. Id. ¶ 13. Surgery was recommended. Id. ¶ 39. The surgery itself was estimated to cost $11,353. Id. ¶ 18. Up to that point, Joseph had accrued $2,444 in medical expenses. Id. ¶¶ 15, 17. Heather also saw Dr. Horn, who was her primary care provider, on July 5. Id. ¶¶ 26, 27. Heather complained of an abrasion on her left shoulder and back pain, which Dr. Horn attributed to the accident. Id. ¶ 26. Heather also

had x-rays of her spine taken during that appointment, which showed there was no “acute abnormality.” Id. ¶¶ 28, 29. The only other medical care Heather received regarding the accident was from an appointment on July 7, where Heather consulted Dr. Horn again for her acute back pain and other unrelated concerns. Id. ¶ 30–32; Docket 13-23 at 95–97, 118. Including the appointment on July 7, Heather’s medical expenses from the accident totaled $504. Docket 13-23 at 116–18; Docket 24 ¶ 31. While processing the Frosts’ insurance claims and medical records,

Progressive found the driver who pulled out in front of the Frosts to be 100% at fault for the accident. Docket 24 ¶ 1. This driver was uninsured. See id. ¶ 2. As such, the Frosts’ claims became uninsured motorist (UM) insurance claims. Id. On March 14, 2024, the Frosts’ counsel sent Progressive a combined settlement offer of $69,000, with $49,500 attributable to Joseph’s UM claim and $19,500 to Heather’s. Docket 24 ¶ 35; Docket 13-9 at 4. Progressive requested further information to fully evaluate the Frosts’

claims, including bills and records from the accident. Docket 14-1 at 42–43. On March 29, Progressive made a counteroffer on Joseph’s UM claim for $12,600 based on records it already had, but it requested a further statement from Joseph to ensure it was considering all elements of his claim. Docket 14-1 at 38. To this end, Progressive, Joseph, and the Frosts’ counsel discussed Joseph’s claim during a conference call on May 8, 2024. Docket 14-1 at 34. As it relates to Heather’s claim, Progressive informed the Frosts that it could “neither accept nor deny” the settlement offer because it lacked sufficient

documentation, despite the Frosts already providing a medical authorization for Progressive to access Heather’s medical records on August 16, 2023. Id. at 40; Docket 24 ¶ 36 (citing id. at 56). The Frosts sent Heather’s medical information to Progressive again on May 2, 2024. Docket 24 ¶¶ 33, 37. On July 18, Joseph provided Progressive gross wage information via his past payment records. Id. ¶ 33; Docket 25-7 at 1 (containing also that Joseph thought he would not work for about two weeks after surgery). The average weekly wages in these records were about $4,250. Docket 25-7 at 1. The

Frosts’ counsel later indicated that the value of Joseph’s lost gross wages would be about $8,000 for two weeks. Docket 24 ¶¶ 19–20. On August 6, the Frosts’ counsel informed Progressive that he believed it should have everything it needed to evaluate the UM claims. Id. ¶ 41. Progressive then made a new total UM settlement offer of $26,775 ($23,770 for Joseph’s claim and $3,005 for Heather’s) on August 16. Id. ¶ 43. Progressive came to this valuation based on the Frosts’ medical records and expenses,

including Joseph’s anticipated surgery cost but not his lost wages, and Heather’s noneconomic damages of fear and reluctance to ride a motorcycle again, which was valued at $1,500 to $2,500. Docket 14-1 at 26–28. The Frosts counteroffered on September 10 with $48,000 as their “best and final settlement offer.” Docket 24 ¶ 44. Progressive countered on September 17 with $40,267; $36,767 allocated to Joseph’s claim and $3,500 to Heather’s. Id. ¶ 45. Progressive considered Joseph’s lost wages as part of this offer and noted that reserves on the Frosts’ claims needed to be increased to

$55,000. Docket 14-1 at 14, 16–17. The Frosts responded to Progressive’s counteroffer on February 25, 2025, after Progressive attempted to reach their counsel multiple times. Docket 24 ¶ 46. Their counsel attributed his response time to difficulty in reaching his clients because of Heather’s ongoing cancer treatment and to the fact the Frosts had already indicated that $48,000 was their final and best offer. Id. Ultimately, the Frosts rejected Progressive’s counteroffer, indicating that Progressive had “lowballed an offer on a settlement amount that [the Frosts]

provided and which was already less than the full value of this claim.” Id. ¶ 48; Docket 13-15 at 1.

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Joseph Frost and Heather Frost v. Progressive Direct Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-frost-and-heather-frost-v-progressive-direct-insurance-company-sdd-2026.