I just lately appeared on a Public Broadcasting Service present discussing the continued insurance coverage disaster in Florida. Throughout the section, an insurance coverage business knowledgeable attributed insurance coverage corporations’ skyrocketing premiums, unresolved claims, and monetary troubles to what they termed as ‘frivolous lawsuits’, together with the contingent charges of attorneys and public adjusters. As I listened, it struck me how there’s a obvious lack of accountability from the insurance coverage business’s facet on this state of affairs. The reality usually appears obscured, with business representatives habitually deflecting blame relatively than partaking in sincere self-reflection.
Conversely, I got here throughout a freeze loss lawsuit just lately gained by AmGuard.1 This case serves as an essential reminder for policyholders concerning the significance of completely vetting the credentials, expertise, and observe report of attorneys earlier than hiring them. It’s essential for attorneys to scrupulously assess claims earlier than initiating authorized motion, guaranteeing the legitimacy of the declare and the energetic involvement and settlement of the consumer relating to the litigation course of, which is inherently difficult.
Of their eagerness to safe a consumer, I’ve noticed that some attorneys may make overly optimistic statements akin to, “Don’t fear, these circumstances all the time settle.” My recommendation is to be cautious of such assurances. Choosing a fast settlement usually ends in accepting far lower than what’s truthful or deserved, primarily based on a false impression that litigation is easy or ‘straightforward.’ As a lawyer, it’s important to strategy the choice of your legal professional with discernment and discover one who’s dedicated to in search of justice for you relatively than an expedient decision to acquire a fast payment.
It isn’t a secret that our legislation agency has been following AmGuard, as famous in Dangerous Religion Verdict Upheld. So, I studied how this case was misplaced and located that the one particular pleading that indicated any particular versus common info was this one, and the one factor particular was the greenback quantity of the dispute:
From and after the time Plaintiffs Declare was offered to Defendant, Defendant’s legal responsibility to pay the complete declare in accordance with the phrases of the Coverage was fairly clear. Nonetheless, Defendant has refused to pay Plaintiff in full, regardless of there being no foundation by any means on which an inexpensive insurance coverage firm would have relied to disclaim the complete cost. Particularly, Defendant erroneously undervalued Plaintiffs declare by erroneously figuring out her declare to be value solely $1,671.85; in truth, Plaintiff’s declare is a minimum of valued at $56,126.67. As such, Defendant’s conduct constitutes a breach of the widespread legislation responsibility of excellent religion and truthful dealing.
The higher fashionable follow of legislation is to put particular particulars into the grievance with dates, proof, and info that exhibit why extra is owed and why the insurance coverage firm acted in dangerous religion. To do that, attorneys should spend time with the consumer earlier than the lawsuit is filed to make sure that the case has a strong factual foundation. Simply because the insurance coverage firm has one estimate of harm completely different from the policyholder’s estimate doesn’t imply the insurance coverage firm has achieved something improper in its claims dealing with.
AmGuard ultimately moved for abstract judgment, and in response, the policyholder’s legal professional filed nothing aside from to maneuver to withdraw from the lawsuit. The legal professional apparently despatched a letter months earlier to the consumer saying he was not capable of get in contact with the consumer. The consumer must be on board with the work that’s going to be required and an energetic participant. I do not know why the legal professional didn’t file a movement to withdraw a lot sooner.
The outcome might be predicted by anybody. With no proof offered to rebut the movement for abstract judgment, the court docket discovered for AmGuard.
Was this a frivolous lawsuit—one with no benefit on the time it was filed? Who is aware of? There was actually nothing achieved by the legal professional for the policyholder. Possibly that legal professional had good purpose to do nothing. However I have no idea of a purpose to do nothing if the case had been correctly ready earlier than submitting the lawsuit. There definitely gave the impression to be proof that extra was owed, however the legal professional didn’t file something in response to the movement.
My expertise and perception is that it’s uncommon that property insurance coverage lawsuits are frivolous. The quantities owed could also be lower than what could be gained after listening to all sides to the story. Nonetheless, the quantities claimed are all the time way more than the insurance coverage firm has paid and the policyholder actually believes is owed. But, circumstances just like the one cited above do nothing however beg for questions on why the declare was filed within the first place and the way it might so simply have been misplaced.
Thought For The Day
If there have been no dangerous individuals, there can be no good attorneys.
—Charles Dickens
1 Castro v. AmGUARD Ins. Co., No. 4:22-cv-00291 (S.D. Tex. Nov. 8, 2023).