ZeroHedge article with their typical bait title.

Some of the comments expand further on why this happened (no surprise, the insurance company being a POS to their paying customer):

Geico let the lawsuit go on through judgment without defending its insured as required by the contract for which the insured paid premiums. Poor guy had a multi-million dollar judgment entered against him. Another judge later found that Geico should have defended its insured. Geico said, okay, let's start over then and retry the original case. Court said no, you should have defended your insured from the get-go.

That's why it is Geico's fault. If you're ever sued for something stupid and your insurance company that you've been paying for years to defend you from such lawsuits tells you to pound sand due to some technicality, you would get it.