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Zalma on Insurance
Litigation Sloth Defeats S
The appellate courts of the state of New York are noted for their ability to resolve an appeal quickly and with brevity.The Supreme Court, the trial court, dismissed plaintiffs’ complaint against Allied World National Insurance Company as time-barred because plaintiffs commenced this action eight years after Allied’s disclaimer of insurance coverage.
Insurer Has the Right to Oppose Plan that Exposes it to Potential Fraud
SCOTUS Unanimously Gives Insurer Right as a “Party in Interest” to a Chapter 11 Bankruptcy. Read the full article at https://lnkd.in/gJPhuaZ3, see the full video at https://lnkd.in/ggC7g-Vt and at https://lnkd.in/g9c25N5Q and at https://zalma.com/blog plus more than 4800 posts.
RICO Suit Against Chiropractors
In Allstate Insurance Co. et al. v. Lint Chiropractic PC et al., No. 2:23-cv-10904, United States District Court, E.D. Michigan, Southern Division (May 30, 2024) Allstate brought a RICO case against chiropractors and conspiracies to defraud Allstate.
Chutzpah From Convicted Dentist
Sentenced to 20 Years in Prison for Medicaid Fraud Yet Demands Return of his License to Practice Dentistry. The Board of Dental Examiners revoked Seth Lookhart’s dental license after he was convicted of dozens of crimes perpetrated in furtherance of a fraudulent scheme of staggering proportions that jeopardized the health and safety of his patients. Lookhart appealed the Board’s revocation of his license, arguing that his punishment was inconsistent with past Board decisions. On appeal, the superior court concluded that the Board properly exercised its discretion by revoking Lookhart’s dental license.
No Coverage for Covid Caused Damage
California Supreme Court Finds no Coverage Under First Party Property Policy for Covid-19 Claims. In Another Planet Entertainment, LLC v. Vigilant Insurance Company, S277893, the Supreme Court of California (May 23, 2024) where Chief Justice Guerrero authored the opinion of the Court, in which Justices Corrigan, Liu, Kruger, Groban, Jenkins, and Evans concurred in a response to an inquiry from the Ninth Circuit Court of Appeals that posed the following question: “Can the actual or potential presence of the COVID-19 virus on an insured’s premises constitute ‘direct physical loss or damage to property’ for purposes of coverage under a commercial property insurance policy?”
Arsonist Must Pay Restitution to Insurer
In September 2019 Otho Harris visited a Boost Mobile store for assistance with his broken cellphone. He became enraged when he was told that it could not be repaired. He returned in the middle of the night and set fire to the store,
Liars Never Prosper
Failure to Tell the Truth on an Insurance Application Voids Entire Policy as if it Never Existed. Ms. Stephens demanded that Defendant Great American Assurance Company (“Great American”) provide legal representation for her under an insurance policy (the “Policy”) it issued related to a professional disciplinary hearing and Great American refused and asserted that she lied on the application for insurance causing the policy to be void.
Zalma’s Insurance Fraud Letter – June 1, 2024
Zalma’s Insurance Fraud Letter (ZIFL) continues its 28th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma.
Appeal Dismissed Even With Fraud Allegation
Appeal Lost Due to Failure to Provide an Adequate Record. In an action to recover damages for personal injuries, the defendant Myrtle 6, LLC, appealed from an order of the Supreme Court, Kings County (Lawrence S. Knipel, J.). The order, insofar as appealed from, denied those branches of the motion of the defendant Myrtle 6, LLC to stay the trial ,to vacate the note of issue, and to compel discovery.
Duty to Defend Exists for Umbrella Policy
Many companies find that a single policy of liability insurance is inadequate and purchase multiple layers or insurance. Many times the policies follow each other’s terms and conditions, but not always. Thermoflex Waukegan obtained several lawyers of coverage but did not require the terms and conditions of each policy to be the same.
Indictment Establishes Probable Cause
Suit for Malicious Prosecution Requires Favorable Termination of Prosecution. Mrs. Marty Spann alleged that Defendants Asurion Insurance Services, Inc. (“Asurion”); former District Attorney General Bruce Griffey; and Tennessee Wildlife Resource Agency (“TWRA”) employees Ed Carter, Mitchell Bailey, Dale Grandstaff, Brad Jackson, and Shawn Karns (collectively with Griffey, the “State Defendants”) maliciously prosecuted her for evidence tampering and insurance fraud. The court was faced with two Motions to Dismiss filed by the State Defendants and Asurion.
Arson-for-Profit Scheme Fails
Innocent Co-Insureds Have no Rights to Proceeds When Fraud Committed on Their Behalf. Plaintiffs Timeless Bar, Inc. and Horseshoe Club, LLC sued their insurer Illinois Casualty Company, claiming the latter breached the parties’ insurance agreement. Specifically, the Plaintiffs allege that even though the fire that destroyed their property was intentionally set by an officer of the corporation and a member of the LLC, the insurer was obligated under the policy and Minnesota law to pay for the loss.
Insureds are Made More Equal Than Insurers
California Court of Appeals Extends Meaning of Statute to Make Insured More Powerful than Insurers at EUO. As George Orwell explained in his novel "Animal Farm" we are all equal but some are more equal than others. In Vladimir Myasnyankin v. Nationwide Mutual Insurance Company, A166946, A167445, California Court of Appeals, First District, Fifth Division (January 30, 2024) the Court of Appeals decided, over the dissent of the Presiding Judge that the insured in a disputed claim is more equal than the insurer.
Public Policy is Vague and Uncertain
Courts Should Not Counter the Work of the Legislature by Use of “Public Policy”. Artemiz Freeman sought to collect uninsured/underinsured motorist benefits under her policy with appellant Progressive County Mutual Insurance Co. (“Progressive”).
Unique Insurance Fraud In Louisiana
Three Cases Dismissed Because of Suit Against an Insurer who Did Not Insure the Plaintiff. Texas Law Firm McClenny, Moseley & Associates (MMA) has had serious problems with the US District Courts in Louisiana and what appears to be an effort to profit from what some Magistrate and District judges indicate may be criminal conduct to profit from insurance claims relating to hurricane damage to the public of the state of Louisiana. In April and May several cases have been the subject of motions for Summary Judgment from insurers who were sued by MMA who was sanctioned by the District Courts and new lawyers took over the cases only to find the plaintiffs had no right to sue since they were not insured by the insurer defendants. For a representative sample note the information from the following three cases:
Officer Immune from Suit
Insurance for State of Delaware Waives Sovereign Immunity. On February 15, 2023, Kimberly Letke (“Plaintiff”) filed a pro se Complaint against Defendant Matthew Sprinkle (“Sprenkle”) for defamation and malicious prosecution. On October 3, 2023, Plaintiff filed another Complaint added Defendants Cpl. Tyler Beulter of the DNREC police (“Beulter”) and the Attorney General of Delaware, Kathleen Jennings (“Jennings”), in which she added three additional claims: false arrest and violations of public trust, unlawful detention, and violations of her rights under the Fourth Amendment to the United States Constitution.
Overcharge of Force Placed Insurance Defense to Foreclosure
Force Placed Insurance Charges Allow Special Defense to Foreclosure. In an action to foreclose a mortgage the trial court granted in part the plaintiff’s motion to strike the defendant’s special defenses and counterclaim; subsequently, the court, Cirello, J., granted the plaintiff’s motion for summary judgment as to liability only; thereafter, the court, Spader, J., rendered judgment of foreclosure by sale, and the defendant appealed.
Insureds Must Negotiate Terms of Coverage Before Inception
Litigation is an Improper Method to Negotiate Insurance Coverage. Read the full article at https://lnkd.in/dztfuAhr, #see the full video at https://lnkd.in/dgGX_AST and at https://lnkd.in/d3hTb6ZK and at https://zalma.com/blog plus more than 4800 posts.
Lender Must Elect To Take Insurance Proceeds
If Lender Approves Use of Insurance Funds to Repair It Cannot Claim it was Damaged. Read the full article at https://lnkd.in/g-_-Pade, see the Full Video at https://lnkd.in/gfXQb2Kh and at https://lnkd.in/gx-522a9 and at https://zalma.com/blog plus more than 4750 posts.
Zalma on Insurance
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Barry Zalma, Esq., CFE is a retired insurance coverage lawyer who blogs daily with digests of insurance cases and writes books and articles on insurance claims, insurance law, and insurance fraud.
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