Whether labor can be depreciated in arriving at an actual cash value property loss settlement has been a hot topic of debate over these past five years. A federal district court in Ohio recently weighed in on the issue in ruling on motions to dismiss two putative class action lawsuits, one against State Farm Fire & Casualty Company1 and one against Allstate Indemnity Company.2
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State Farm Buys It Way Out of a Billion Dollar Judgement for $250 Million
Law360 reported yesterday that State Farm settled a RICO lawsuit against it for $250 Million. I previously have noted this amazing, made-for-movie case in Did State Farm Buy Its Way Out of a Billion Dollar Judgment.
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State Farm Claims Whistleblowers Win in United States Supreme Court and May Get Additional Evidence of Wrongdoing
The Rigsby sisters have now prevailed in the highest court of the land in their decade long fight against State Farm.1 The Rigsby sisters were catastrophe adjusters working for State Farm on Hurricane Katrina claims. I have noted this case for some time:
- The Insurance Adjuster’s Dilemma: Tell the Truth and Face the Consequences By Raising Claim Practice Misconduct
- State Farm Whistle-Blower Suit Regarding Altered Expert Reports Continues
- State Farm "Qui Tam" Hearing Raises Issues of Wrongful Adjustment
- Flood Adjustment Methods Discovered in Qui Tam Case
- Financial Pressures on Insurance Vendors and Experts
- State Farm Rigsby Qui Tam Matter is Ready for Trial
- State Farm Found Guilty of Fraudulent Claims Conduct in Rigsby Qui Tam Case
- Rigsby Sisters Beat State Farm Again and HAAG Qui Tam Settlement Disclosed
- Rigsby Sisters Win Qui Tam Appeal Regarding Fraudulent Handling of Katrina Flood Claims
State Farm Operation Guidelines Regarding Wind and Hail Damage to Composition Roofs
Insurance companies routinely have instructions for their claims adjusters on how to adjust various types of losses. State Farm has some of the most detailed claims guidelines in the industry. I have often stated that for first-party claims, relevant claims guidelines should also be provided to the policyholders who suffer losses. Why not?
State Farm Employee and McKinsey Insurance Consultant Accused of Fraud
Ed Rust must have muttered, "you’ve got to be kidding," after learning that a McKinsey & Company consultant and State Farm employee were accused of siphoning about $900,000 in consulting fees and expenses.
Rigsby Sisters Win Qui Tam Appeal Regarding Fraudulent Handling of Katrina Flood Claims
Cori and Kerri Rigby have won their appeal and have been granted the ability to expand their claims of fraud regarding the adjustment of NFIP claims from Hurricane Katrina.1 The Fifth Circuit Court of Appeals found:
State Farm Overcharged Texas Policyholders
I have to admit, I missed this story when it first came out a few weeks ago. Although State Farm did not admit wrongdoing, read the article and draw your own conclusions (the italicized portions are key). As reported by The Dallas Morning News on February 27, 2015:
Another Good Discovery Order Concerning State Farm
I have published on four occasions concerning good orders coming out of the Barten v. State Farm case.1 Well, it seems more courts are issuing favorable discovery orders, including a recent ruling from a federal district court in Arkansas.2
Rigsby Sisters Beat State Farm Again and HAAG Qui Tam Settlement Disclosed
Cori and Kerri Rigsby keep beating State Farm in their Katrina Qui Tam litigation. This case is one of the final Hurricane Katrina cases still making news.
State Farm’s ACE Program
I have previously blogged about the decisions coming out of the United States District Court of Arizona in the Barten v. State Farm case. Recall, my Barten blogs have largely concerned State Farm’s corporate profit augmentation programs, whether the programs are called ACE or something else. Well, good orders just keep coming out of the Barten case. As discussed in greater detail below, State Farm continues to try to come up with every possible reason under the sun for not producing ACE or ACE-related documentation to Barten; but, thankfully, the District Court of Arizona continues to take a stance against State Farm’s maneuvering.