A while back, I wrote about a Georgia Supreme Court decision, Royal Capital Development LLC v. Maryland Casualty Co., that held that diminution in value of real property is potentially covered under a property insurance policy, in addition to the costs of repairs (see my June 6, 2012 blog post). This was an
Property Insurance
Labor Depreciation Class Action Update
By Wystan Ackerman on
Posted in Property Insurance
It’s been a while since I updated you on the status of class action litigation regarding the application of depreciation to labor costs on property insurance claims. There have been three decisions since my last update, with sharply conflicting results. So what does this mean? I expect that 2016 will bring a significant number of…
Depreciation of Labor Class Action — Minnesota Supreme Court Oral Argument
By Wystan Ackerman on
Posted in Property Insurance
I’ve been following closely a series of class actions around the country alleging that, in calculating the “actual cash value” of property damage under a homeowners or commercial property insurance policy, insurance companies should not be applying depreciation to the labor component of the replacement cost of a damaged structure. When insurers estimate “actual cash…
Filed Rate Doctrine Addressed in Recent Second Circuit Decision
By Wystan Ackerman on
Posted in Property Insurance
The filed rate doctrine can often provide a strong defense to an insurer in a class action claiming that insurance premiums were too high for some reason. A recent Second Circuit decision applied the doctrine broadly. This decision is likely to be helpful to insurers in future cases.
Update on Labor Depreciation Class Action Litigation: Kansas Federal Court Rules for Insurer
By Wystan Ackerman on
Posted in Property Insurance
As an update to my March 29, 2015 blog post on the status of class actions on the labor depreciation issue, a Kansas federal court recently granted summary judgment in favor of an insurer.
In Graves v. American Family Mutual Insurance Company, 2015 WL 4478468 (D. Kan. July 22, 2015), the homeowners’ policy at…
Labor Depreciation Class Actions Heating Up Across The Country
By Wystan Ackerman on
Posted in Property Insurance
Class action litigation is spreading across the country involving the application of depreciation in calculating the actual cash value of property damage under homeowners and commercial property insurance policies. This blog post will be longer than typical, but I think you will find it worth reading.
The Issue: For decades, insurers have been using replacement-cost-less-depreciation…
Premium Refund Theory in Insurance Class Action Rejected By Michigan Federal District Court
By Wystan Ackerman on
Posted in Property Insurance
One theory that has been raised by plaintiffs’ lawyers in some insurance class actions is that policyholders should receive a partial refund of their premiums because they are not receiving the coverage they paid for, or coverage purchased is illusory. A recent Michigan federal district court opinion rejected this theory on the grounds that: (1) …
Class Action Against State Auto Concerning Homeowners’ Policy Limits Is One Worth Watching
By Wystan Ackerman on
Posted in Property Insurance
Insurers typically adjust (or propose to adjust) the policy limits on a homeowners’ policy every year to take into account changes in the cost of construction. This is intended to help insureds make sure that sufficient coverage is available if there is a total loss. At the same time, this can result in an increase …
The Local Action Doctrine: Potentially Relevant to Property Insurance Cases?
By Wystan Ackerman on
Posted in Property Insurance
Have you ever heard of the local action doctrine? The distinction between local and transitory actions? If you’re a lawyer, you might have heard something about this in law school. But perhaps not since then. The Supreme Court has not addressed it since 1912. But the Ninth Circuit held last week that the local action …
Insurance Class Action on Polybutylene (PB) Piping: Magistrate Judge Recommends Denial of Motion to Decertify Class
By Wystan Ackerman on
Posted in Property Insurance
I’ve written before (see my February 1, 2012 blog post) on a class action pending in the District of Arizona involving repair or replacement of polybutylene (PB) piping on property insurance claims. The policy language at issue provides that “If loss to covered property is caused by water or steam not otherwise excluded, we …