Late yesterday evening, December 10, 2014, Chief Judge Jerome B. Simandle of the U.S. District Court for the District of New Jersey sent a letter to several law firms handling Superstorm Sandy claims, Merlin Law Group included, concerning the potentially widespread issue of “Revised” engineering reports.… Continue Reading
What is better than one smart judge telling attorneys what to do? How about a three-judge panel at the same time? Superstorm Sandy policyholders got a great discovery ruling in New York yesterday from Magistrate Judges Cheryl Pollak, Gary Brown, and Ramon Reyes, that should be something courts do in all insurance controversies—require honest and … Continue Reading
United States Senator Robert Menendez – the senior senator from New Jersey, today issued a letter seeking a full investigation into the fraudulent altering of reports by carrier friendly experts. Followers of our blog know that this has risen to the forefront of Superstorm Sandy flood litigation. Essentially, carriers and their experts are accused of … Continue Reading
Attorney professional conduct, courtesy and honest candor were significant and possibly overlooked aspects in Magistrate Judge Gary Brown’s Raimey v. Wright National Flood Insurance Company Memorandum & Order. The press has picked up on the case highlighting the altered engineering report.1 I also highlighted these aspects of the case in Altered Engineering Reports Must Be Disclosed … Continue Reading
In Altered Engineering Reports Must Be Disclosed – Sandy Flood Judge Requires Transparency, I noted Raimey v. Wright National Flood Ins., No. 14-CV-461 (E.D.NY Nov. 7, 2014), where Magistrate Judge Gary R. Brown specifically cited findings that insurance company engineering reports are routinely altered under a process dubbed “peer review.” A summary of those findings show … Continue Reading
Yale educated Magistrate Judge Gary R. Brown issued a blockbuster discovery ruling which will have ramifications for insurance litigation far past Superstorm Sandy flood cases. He is requiring insurers to turn over "drafts" of engineering reports.1… Continue Reading
An engineering firm has produced an alleged fraudulent report of an engineer’s opinion in a Superstorm Sandy flood lawsuit. Outcome oriented vendor firms providing outcome oriented reports is a big problem for consumers of insurance after a loss occurs. Reports can be altered and language changed which can be disastrous for insurance customers and save … Continue Reading
In a time where expert reports are more the norm than the exception, it’s important to remember that a great expert report is only as good as the expert delivering it. Delivery here is being used in the sense of delivering a timely, well written report and verbally delivering a succinct explanation of the methodology used … Continue Reading
Wildfire cases are unique and have many evidentiary issues. Public adjusters have been making claims for damage by fire, heat, and especially smoke. State Farm and its able trial counsel successfully appear to be fighting back in Falcon v State Farm Lloyds.1… Continue Reading
Expert witnesses are crucial to support disputed insurance claims, especially when the claims involve extensive damage, as is often the case in hurricane claims. While the standards for expert witness testimony may differ between state and federal courts, all federal courts are bound by Federal Rule of Evidence 702 and the United States Supreme Court’s … Continue Reading
The role that experts serve in first-party property claims is an important and vital one. Engineers and damage consultants are often needed to establish the extent of damages repair protocols. Those called to testify are known as testifying experts. There is another type of expert that the law recognizes: “consulting” experts. Consulting experts are retained … Continue Reading
In a recent case before the U.S. District Court in Ft. Lauderdale, the Court had to decide whether a policyholder’s expert should be allowed to testify on certain issues in the trial of the case involving Hurricane Wilma damages. Clena Investments, Inc. v. XL Specialty Ins. Co., 2012 WL 266422 (S.D. Fla. January 30, 2012). … Continue Reading
Property insurance claims litigation often requires hiring several experts. Policyholders may need to retain a construction cost expert and engineer to give opinions on property damage, a bad faith expert regarding claims handling practices, and an accountant regarding business income losses. Depending on the case, the list can quickly grow to include an architect, a … Continue Reading
Last week, I wrote about insurance coverage and bad faith cases where public adjusters may need to be designated as experts at trial. Accordingly, a public adjuster’s expertise must be thoroughly considered by the insured’s lawyer when it comes time for designation of experts. Problems may arise, however, if the public adjuster is to offer … Continue Reading
In litigation, insurers often try to exclude or limit policyholders’ experts’ testimony. This can be an aggressive tactic aimed to take the wind out of the policyholders’ sails, since it is difficult to refute insurers’ expert conclusions without your own.… Continue Reading
Hiring qualified experts to assist policyholders in the presentation of a business interruption claim is a sine qua non condition for success. An expert’s inexperience or poor work product could cause irreversible damage and destroy any viability of what would have been an otherwise valid claim.… Continue Reading
Outcome oriented investigations plague the insurance adjustment process. Outcome oriented techniques arise in number of forms, from limiting the information sought, writing reports with no more than what is called upon, not informing the policyholder of other areas of possible damage, de-selecting those that write reports which provide too much information and lead to greater coverage, … Continue Reading
One strategy insurance companies use to avoid bad faith liability is claiming that they reasonably relied on their experts’ reports to deny a claim. Texas law on bad faith states that an insurer breaches its duty of good faith when: (1) denies or delays payment of a claim for which liability is reasonably clear, and … Continue Reading
Expanding on last week’s blog, Did You Know That An IME Provider Can Be Liable To The Insured, I want to show how an insurer’s use of a medical provider to conduct an independent medical examination can serve as evidence of bad faith against the insurer.… Continue Reading
My posts over the last few weeks focused on how an insurer’s breach of its duty to its insured can result in the insurer’s liability for bad faith. This week, I would like to write about how someone hired by the insurer in connection with the investigation of your client’s claim can also have obligations … Continue Reading
I recently represented a client at a court hearing on a motion to compel appraisal to determine the amount of roof damage from Hurricane Wilma. The insurance company’s attorney opposed appraisal, so the judge asked him who other than appraisers should determine the amount of damage from Wilma. “I’m not getting on that roof!” exclaimed … Continue Reading
Claims practice experts can help explain why the conduct of an insurer is tantamount to "bad faith." As explained by Vivian Persand in Getting the Inside Scoop on Insurance Company Claims Practices, a good claims practice expert can help a policyholder attorney. Eventually, the same expert will write a report containing the findings and opinions … Continue Reading
Kelly and Craig Kubiak successfully presented a case to a jury this week involving a dispute with a long time USAA policyholder following a denial of her property insurance claim. The $245,000 jury verdict came after lengthy and contentious litigation with USAA. The opposing counsel and his law firm are one of the most successful in … Continue Reading
Yesterday’s post, Physical Damage is Needed to Collect for Loss of Warranty, may lead some to think that property insurance policies require “structural” or a “functional” destruction before coverage is not afforded. This simply is not true. Alterations to the physical appearance of a structure or personal property are covered so long as the cause … Continue Reading