In a putative class action pending Arkansas federal court, a question of law was certified to the Arkansas Supreme Court regarding whether labor may be depreciated on property insurance claims, if the insurance policy does not define the term “actual cash value” (see my May 8, 2013 blog post on the federal court’s certification of
Property Insurance
Depreciation Class Action: Arkansas Federal Court Certifies Question to Arkansas Supreme Court
By Wystan Ackerman on
Posted in Property Insurance
In August of 2012, I reported on a newly-filed class action in Arkansas federal court alleging that, in estimates on property insurance claims, application of depreciation to labor costs is improper (see my August 7, 2012 blog post). As an update on this case, Chief Judge P.K. Holmes, III of the Western District of…
Depreciation Class Action: California Superior Court Grants Class Certification
By Wystan Ackerman on
Posted in Property Insurance
Back in May of 2011, I wrote on this blog about a new class action in California against Farmers involving claims of improper application of depreciation on property insurance claims, allegedly in violation of a California statute and regulation that govern application of depreciation (see my May 17, 2011 blog post). In a similar…
Superstorm Sandy and Hurricane Irene Class Action Filed Regarding Flood Insurance Claims
By Wystan Ackerman on
Posted in Property Insurance
It’s been only about 45 days since Superstorm Sandy struck, and already the first insurance class action has been filed in New Jersey federal court. In Donnelly v. New Jersey Re-Insurance Company, et al, Case No. 2:33-av-00001 (D.N.J., filed Dec. 13, 2012), the allegations focus on coverage for flood insurance claims made under the…
Resolving Superstorm Sandy Insurance Claims: Lessons From Katrina
By Wystan Ackerman on
Posted in Property Insurance
A recent column by Ron Lieber in the New York Times, “After the Storm: Your Homeowner’s Claim,” predicts that it will take years to settle many insurance claims arising from Superstorm Sandy. But does it have to be that way? I was heavily involved in the litigation arising from Katrina, and see…
Hurricane Sandy Insurance Claims: How Insurers Can Reduce Class Action and Bad Faith Exposure
By Wystan Ackerman on
Posted in Property Insurance
Insurers are starting to deploy adjusters to handle claims from Hurricane Sandy. An article in today’s Wall Street Journal reports that “Disaster-modeling firm AIR Worldwide estimates the industry’s share of losses at $7 billion to $15 billion. At the high end of that range, Sandy would become the third-most expensive storm for insurers in U.S.
Update on Preferred Contractor Program Class Action Against Alacrity and Allstate
By Wystan Ackerman on
Posted in Property Insurance
Some readers have asked for an update on the status of Boynton v. Alacrity Services, LLC, a putative class action filed in July involving a preferred contractor program, which was mentioned in my July 16, 2012 blog post. The case was removed to the U.S. District Court for the Northern District of Ohio. …
New Class Actions on Depreciation and Subrogation “Made Whole” Doctrine
By Wystan Ackerman on
Posted in Property Insurance
I recently came across two new class action filings against insurance companies that may be of interest to readers of my blog. One case involves whether it is appropriate to depreciate labor costs in estimating actual cash value. Another case involves the application of the “made whole” doctrine, where applicable, to insurers’ handling of subrogation…
Class Action on Preferred Contractor Program Filed Against Allstate
By Wystan Ackerman on
Posted in Property Insurance
Some insurance companies have preferred contractor programs under which the insurer, or a party they contract with, develops a network of contractors who are available to repair property damage for insureds. The insurer typically subjects contractors to a background check of some kind before they are included in the network, and may require contractors in…
Property Insurance Class Action: Alleged Underpayment of ACV Found Insufficient Where RCV Payment Complied With Policy
By Wystan Ackerman on
Posted in Property Insurance
Property insurance policies typically provide for an initial payment on an actual cash value (ACV) basis, which is often calculated as the replacement cost less depreciation. After the repairs are completed, under many policies the insured can recover an additional payment up to the full replacement cost value (RCV) of the loss. Insureds have brought…