Trumbull Insurance Co. faces class action for withholding material, labor costs
According to the complaint, the plaintiff's policy does not allow withholding labor as depreciation.
The plaintiffs are represented by Michael C. Conroy of Hassett & George, J. Brandon McWherter of McWherter Scott & Bobbitt, Erik D. Peterson of Erik Peterson Law Offices, and T. Joseph Snodgrass of Snodgrass Law.
Trumbull is a subsidiary of The Hartford Financial Services Group. The defendant offers property insurance in Arizona, California, Connecticut, Illinois, Kentucky, Maryland, Mississippi, Missouri, Ohio, Tennessee, Texas, Utah, Vermont, Washington and Wisconsin.
The named plaintiffs, Betty Grawe and Daniel Grawe, are citizens of Illinois, and contracted with the defendant for an insurance policy for coverage of their property.
The plaintiffs filed a claim with the insurance company after their property was damaged, and the defendant found that the loss was covered by their policy, the complaint said.
According to the complaint, the plaintiff’s policy does not allow withholding labor as depreciation.
However, when the defendant calculated the actual cash value payment, the defendant subtracted from the replacement cash value the deductible and an additional amount for depreciation, the complaint said.
“When defendant calculated plaintiffs’ [actual cash value] benefits under the [policy], defendant withheld costs for both the materials and labor required to repair or replace the plaintiffs’ residence as depreciation, even though labor does not depreciate in value over time,” the complaint said. “Defendant withheld labor costs through its actual cash value calculations as depreciation.”
The proposed class includes policyholders who made a structural claim for property damage, and the claim was accepted by the defendant, and policyholders who were underpaid on their actual cash value payment due to the defendant withholding costs for material and labor as depreciation.
The complaint stated that the insurance policies at issue are essentially identical across the various states where its property insurance is available.
The plaintiffs claim that the defendant breached its contractual obligations to policyholders, and they are entitled to recover damages, the complaint said.
“Defendant’s actions in breaching its contractual obligations to plaintiffs and members of the proposed class benefitted and continues to benefit defendant,” the complaint said. “Likewise, defendant’s actions damaged and continue to damage plaintiffs and the members of the proposed class.”
The attorneys for the plaintiffs and a representative for Trumbull Insurance did not respond for comment.
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