The insured’s lawsuit was dismissed because it was filed long after the time frame provided by the policy’s suit limitation provision. The Eichholz Law Firm P.C. v. State Farm Mut. Auto. Ins. Co., No. 1:24-cv-03403-TRJ (N.D. Ga., March 12, 2026).

The insured law firm’s automobile was damaged in an accident on August 21, 2020. A claim was submitted to State Farm. Coverage was accepted, the claim was evaluated and, because the vehicle was not a total loss, repairs were paid for. Diminution in value, however, was not paid for.

When the diminution in value claim was not paid, the law firm filed suit on July 31, 2024. State Farm moved to dismiss, arguing the suit limitation provision required suit to be filed within one year of the date of loss, or by August 21, 2021. The law firm argued State Farm was legally obligated, under the policy and Georgia common law, to pay for the diminution in value for the car.

Georgia courts had held that contractual time limitations for filing suit under insurance policies were enforceable. The law firm argued that State Farm never denied coverage of the diminished value claim, offered a partial payment of damages, and was currently still negotiating the claim with the law firm. State Farm responded that the partes’ negotiations related to the potential resolution of the lawsuit, ant the underlying claim.

The court held that the law firm’s breach of contract claim was contractually time-barred. Therefore, the claim was dismissed.