I lately appeared on a Public Broadcasting Service present discussing the continuing insurance coverage disaster in Florida. Through the section, an insurance coverage business skilled 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 business’s aspect on this scenario. The reality usually appears obscured, with business representatives habitually deflecting blame slightly than participating in sincere self-reflection.

Conversely, I got here throughout a freeze loss lawsuit lately received 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 concerning the litigation course of, which is inherently difficult.

Of their eagerness to safe a consumer, I’ve noticed that some attorneys would possibly make overly optimistic statements similar to, “Don’t fear, these circumstances at all times settle.” My recommendation is to be cautious of such assurances. Choosing a fast settlement usually leads to accepting far lower than what’s honest or deserved, based mostly on a false impression that litigation is simple or ‘simple.’ As a lawyer, it’s important to method the choice of your lawyer with discernment and discover one who’s dedicated to searching for justice for you slightly 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 normal details 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. Nevertheless, Defendant has refused to pay Plaintiff in full, regardless of there being no foundation in any way on which an affordable 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 price solely $1,671.85; actually, Plaintiff’s declare is a minimum of valued at $56,126.67. As such, Defendant’s conduct constitutes a breach of the frequent legislation responsibility of fine religion and honest dealing.

The higher fashionable apply of legislation is to position particular particulars into the criticism with dates, proof, and details 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 stable factual foundation. Simply because the insurance coverage firm has one estimate of injury totally different from the policyholder’s estimate doesn’t imply the insurance coverage firm has completed something unsuitable in its claims dealing with.    

AmGuard finally 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 must 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 outcome could possibly 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 advantage on the time it was filed? Who is aware of? There was actually nothing completed by the lawyer for the policyholder. Perhaps that lawyer had good motive to do nothing. However I have no idea of a motive to do nothing if the case had been correctly ready earlier than submitting the lawsuit. There actually gave the impression 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 will be received after listening to all sides to the story. Nevertheless, the quantities claimed are at all times rather 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 folks, there could be no good attorneys.

—Charles Dickens

¹ Castro v. AmGUARD Ins. Co., No. 4:22-cv-00291 (S.D. Tex. Nov. 8, 2023).