I lately appeared on a Public Broadcasting Service present discussing the continued insurance coverage disaster in Florida. During the phase, an insurance coverage trade 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 evident lack of accountability from the insurance coverage trade’s facet on this state of affairs. The fact usually appears obscured, with trade representatives habitually deflecting blame quite than partaking in sincere self-reflection.
Conversely, I got here throughout a freeze loss lawsuit 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 document of attorneys earlier than hiring them. It’s essential for attorneys to scrupulously assess claims earlier than initiating authorized motion, making certain the legitimacy of the declare and the lively involvement and settlement of the consumer relating to the litigation course of, which is inherently difficult.
In their eagerness to safe a consumer, I’ve noticed that some attorneys would possibly make overly optimistic statements akin to, “Don’t worry, these cases always settle.” My recommendation is to be cautious of such assurances. Opting for 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 ‘easy.’ As a lawyer, it’s important to strategy the collection of your lawyer with discernment and discover one who’s dedicated to looking for justice for you quite than an expedient decision to acquire a fast payment.
It will not be a secret that our regulation agency has been following AmGuard, as famous in Bad Faith Verdict Upheld. So, I studied how this case was misplaced and located that the one particular pleading that indicated any particular versus normal info was this one, and the one factor particular was the greenback quantity of the dispute:
From and after the time Plaintiffs Claim was introduced to Defendant, Defendant’s legal responsibility to pay the total declare in accordance with the phrases of the Policy was moderately clear. However, Defendant has refused to pay Plaintiff in full, regardless of there being no foundation in anyway on which an inexpensive insurance coverage firm would have relied to disclaim the total fee. Specifically, Defendant erroneously undervalued Plaintiffs declare by erroneously figuring out her declare to be value solely $1,671.85; in actual fact, Plaintiff’s declare is no less than valued at $56,126.67. As such, Defendant’s conduct constitutes a breach of the widespread regulation obligation of excellent religion and truthful dealing.
The higher fashionable follow of regulation is to put particular particulars into the grievance with dates, proof, and info that display why extra is owed and why the insurance coverage firm acted in unhealthy 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. Just as a result of the insurance coverage firm has one estimate of harm totally different from the policyholder’s estimate doesn’t imply the insurance coverage firm has performed something flawed in its claims dealing with.
AmGuard ultimately moved for abstract judgment, and in response, the policyholder’s lawyer filed nothing apart from to maneuver to withdraw from the lawsuit. The lawyer apparently despatched a letter months earlier to the consumer saying he was not capable of get in contact with the consumer. The consumer needs to be on board with the work that’s going to be required and an lively participant. I don’t know why the lawyer didn’t file a movement to withdraw a lot sooner.
The consequence could possibly be predicted by anybody. With no proof introduced 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 performed by the lawyer for the policyholder. Maybe that lawyer had good purpose to do nothing. But I have no idea of a purpose to do nothing if the case had been correctly ready earlier than submitting the lawsuit. There definitely appeared to be proof that extra was owed, however the lawyer 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 may be gained after listening to all sides to the story. However, the quantities claimed are all the time rather more than the insurance coverage firm has paid and the policyholder truthfully believes is owed. Yet, 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 may so simply have been misplaced.
Thought For The Day
If there have been no unhealthy 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).