Property Insurance Coverage Law Blog : Florida Insurance Lawyer & Attorney : Merlin Law Group Law Firm : Tampa, Houston, Coral Gables, Gulfport

In what proved to be a successful effort to flesh everything out for the judge, the attorney provided detailed information about the type of programs that likely affected the manner in which the client’s claim was handled:

During the time period when the underlying claims were at issue and being handled by Safeco, it [Safeco] developed institutional policies aimed an increasing profits through their claims handling practices. This includes development and implementation of various ‘new’ programs created in consultation with Accenture. These various programs, called ‘Safeco Way’, ‘Quantum Leap’, ‘Calibration Program’ and more have been the subject of discovery in other cases.

What is the first thought that comes to mind?

• “This attorney sounds like he knows he’s talking about”?
• Are you wondering “What is ‘Safeco Way’? Or
• “What is ‘Quantum Leap’ about?

Yes, this attorney does, in fact, know what he’s talking about, so does Safeco, and now the judge does as well. This attorney did his homework and learned about the various programs that were implemented in the insurer’s business. Then he educated the judge about programs and how their implementation directly affected the way his client’s claim was handled. He showed the judge why these documents were directly relevant to the issues before the court and demonstrated the client’s right to see them.

For those of you who are first learning about these programs by way of this blog, these are the types of programs and policies that the right expert can help you with. My June 18, 2010, blog titled “Getting the Inside Scoop on Insurance Company Claims Practices,” discussed the type of expert that you should consider retaining in a bad faith case. This kind of expert can tell you about these programs and explain in careful detail how your client’s claim was affected by each. It is only when you understand the intricate and strategic workings of the insurer and the goals set for the adjuster who handled your client’s claim that you will understand exactly what you need to obtain through discovery and how to get it. When you understand that there were multiple programs very carefully crafted, each with its own very effective manner of chipping away at the amount paid on your client’s claim, then you will understand that your client was very likely fighting a losing battle from very beginning. That is, of course, until someone like our plaintiff’s attorney came to the rescue.

Getting back to our attorney, the judge entered an order compelling discovery. The Order states:

Safeco shall supplement production in compliance with this Court’s prior order compelling, without protection, all responsive documents, including but not limited to documents related to Accenture, Quantum Leap Initiative, Caliber, Safeco Way, LEO, best practices, PDFR etc…

But the court did not stop there.

Safeco shall submit declarations in 30 days explaining why these documents were not previously produced pursuant to this Court’s September 2005 order.

For this judge, it wasn’t enough for Safeco to produce the documents. The judge wanted an explanation for Safeco’s failure to produce the documents pursuant to the court’s previous order. No, courts don’t take kindly to parties who do not comply with their orders. Again folks, judges are taking notice and they are not always pleased with what they see insurers doing or trying to pull off.

So don’t let the insurer or its attorneys intimidate you. Defense counsel is human, just like you. And the insurer is a business that has rules to follow just like all the others. Help your judge see through the insurer’s unfounded objections, its plethora of meaningless production and defense counsel’s circular arguments.

Had enough of motions to compel for now? Me too.

Tune in next week for another discussion of bad faith litigation.

Happy Friday!

I suggest that every customer of Liberty Mutual and Safeco ask in advance what type of claims payment philosophy the insurer will follow before signing on the dotted line. Would you want to be a customer of a company that had its claims department taking a corporate "quantum leap" to bring back profits into an insurance corporation? That is exactly what Safeco and Liberty Mutual have been doing, and it is time that the insuring public is made aware of what type of treatment the public can expect with that company and its subsidiaries.

Every insurance company selling first party insurance has an obligation to investigate coverage and evaluate damages. That obligation requires the insurer to do so promptly, at its own expense, and in a completely honest manner. There are a lot of insurance company adjusters and insurance company attorneys that subscribe to this blog. Does anybody disagree?

If not, why don't Safeco and Liberty Mutual turn over all consultant reports to their customers in first party claims? Are they afraid to be honest? Why do Safeco insurance adjusters refuse to turn over draft reports of consultant reports, citing "work product" privilege? Maybe every Safeco and Liberty Mutual customer should do the following every night before a loss occurs:

We have had a number of Liberty Mutual policyholders, public adjusters, and policyholder attorneys contact us following our post, Safeco and Liberty Mutual Claims Practices Questioned on a National Basis: Policyholders Organize Against Wrongful Claims Practices.

Here is what one had to say:

Last year, my house caught on fire and liberty mutual has refused to pay invoking appraisal within one month without ever properly presenting or looking over the claim. Detectives, police, and their own cause and effect engineers say we had no fault in the fire. Yet, they have repeatedly used stall tactics.

This past year (they said) they didn't receive receipts or information that I have faxed verification showing successfully doing so. And then, they later admitted they had it the whole time saying "this is what we already had." While they have had beds to sleep in and warm food on the table, they have left me and my four kids homeless sleeping on the cold hard floor of one of the rooms that caught on fire. [They were] spending more money for detectives and fighting the claim than if they had paid and now because the adjuster that invoked appraisal and then found out the umpire sided more towards me and my children, they are arguing his decision [is wrong] and them selecting him. DSS is about to take my kids due to the living conditions and everyone is dragging their feet...what can be done??

This afternoon, I spoke with another Texas corporate policyholder attorney with a similar story. I have a corporate policyholder client whose CPA consultant has accused the Safeco adjuster of lying to her about facts of the adjustment.

As a result of Safeco and Liberty Mutual delaying turning over information about reports and estimates in that case, we have now uncovered over 150,000 claims manual operation procedures and guidelines which address how Liberty Mutual and Safeco go about their claims procedures and documents evidencing Safeco's profit oriented program of "quantum leap."

When I have asked Liberty Mutual and Safeco adjusters and attorneys if they agree they have an obligation to adjust in good faith and act honestly, promptly and in cooperation, they say, "yes." When I ask for them to do so or why they have not, this is the type of response I get and what others are reporting to me when they ask the same question:

If you are an insurance customer, I suggest a few companies that compete on service. For example, here is what I have had to say about Chubb in Chubb Calls Competitors Cheap And Unfair. Buy from companies you can trust. How cheap is insurance from Liberty Mutual if it does not pay fully, promptly or in good faith?