This week the Eighth Circuit issued its long-awaited decision in a class action against State Farm involving the “labor depreciation” issue that I have covered extensively on this blog (see my August 14 post and others). State Farm prevailed on both the merits of whether its approach to determination of the actual cash value of
Depreciation
Update on Labor Depreciation Class Actions
By Wystan Ackerman on
Posted in Property Insurance
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…
Depreciation of Labor Costs Class Action: Nebraska Supreme Court Rules In Favor of Insurer
By Wystan Ackerman on
Posted in Property Insurance
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…
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…
Class Action on Depreciation of Labor on Property Insurance Claims: New Arkansas Supreme Court Decision
By Wystan Ackerman on
Posted in Property Insurance
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 …
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…
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…