Tag Archives: Depreciation

Update on Labor Depreciation Class Actions

There have been two recent federal district court decisions in the widespread class action litigation involving the application of depreciation to the labor cost component of replacement cost value on property insurance claims. (For background on this issue, see my February 21, 2017 blog post.) The “labor depreciation” litigation has been trending in favor of … Continue Reading

Depreciation of Labor Costs Class Action: Nebraska Supreme Court Rules In Favor of Insurer

I’ve regularly followed on my blog key developments in the numerous class actions against the insurance industry involving the application of depreciation to the labor cost component of estimated replacement cost value in determining actual cash value under homeowners and commercial property insurance policies. The Nebraska Supreme Court recently addressed this issue on a certified … Continue Reading

Depreciation of Labor Class Action — Minnesota Supreme Court Oral Argument

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 … Continue Reading

Class Action on Depreciation of Labor on Property Insurance Claims: New Arkansas Supreme Court Decision

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 … Continue Reading

Depreciation Class Action: Arkansas Federal Court Certifies Question to Arkansas Supreme Court

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 Arkansas … Continue Reading

New Class Actions on Depreciation and Subrogation “Made Whole” Doctrine

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 … Continue Reading
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