This actually makes too much sense to hold up but who knows. Thanks to our friends on the Cameron Parish School Board ordinary people won a very important battle against big insurance. Our readers no doubt recall how the 5th Circuit slaughtered the concept of anti concurrent causation in Leonard v Nationwide while ruling the policy clause was not ambigious.
In a case with fact patterns evidently very similar to the Mississippi case Broussard v State Farm the Federal District court has ruled out self serving after the fact experts for insurers:
This inquiry is factual. RSUI relies upon Nelson’s adjustment to justify its failure to pay. Nelson did not begin adjusting until August 2007. CPSB filed suit in September 2006, and thus RSUI cannot now rely on Nelson’s reports to justity its failure to pay prior to August 2007 because whether an action is arbitrary, capricious, or without probable cause depends on the facts known to the insurer at the time of its action.
Bottom line is insurers have a duty to adjust their claims. Using logic only a lawyer would appreciate RSUI actually argued Continue reading “Western La District Court Finds a Way to Short Circuit the Fifth Circuit?”