Antitrust Filed Alongside Bad Faith Claims Unlikely to Advance, According to Federal Judge
Antitrust Filed Alongside Bad Faith Claims Unlikely to Advance, According to Federal Judge Aug 13, 2019 A case that could have huge repercussions on insurance litigation and insurance bad faith claims is in particular against State Farm insurance could go in the direction for the insurance company, according to reports. Plaintiffs brought antitrust claims against the insurance company, State Farm, alleging that it conspired with software makers to undervalue damage to homes in the due to fires; allegedly leaving homeowners with less than they needed to recoup the costs. Complaints Against Valuation Tools Specifically, the plaintiffs claim that State Farm relied on a valuation tool known as “360 Value,” which is produced by Verisk Analytics and Insurance Services Offices Inc. According to the complaint, the tool estimates property values at only 30 to 40 percent of their actual value and, as a result, does not account for a number of important aspects and factors that are relevant in calculating insurance payouts. In addition, another tool, called “Xactimate,” they allege, estimates construction costs at 50 percent below their actual market rates. For example, the tool estimated the cost of rebuilding one home at $804,000 when it actually cost $2.2 million, according to the complaint. Antitrust Claims The antitrust claim is based on allegations that the companies that produce these tools essentially monopolize the market, while providing flawed products, and State Farm has been complicit by decreasing ensures valuations for homes. However, the judge indicated that he did he was unsure that antitrust claims were appropriate for allegations linked to an insurance company allegedly relying on unreliable valuation tools that cost homeowners to suffer. Instead, he indicated that the product liability or negligence claim might be more appropriate. In addition to the antitrust claims, the plaintiffs are alleging bad faith, breach of the implied covenant of good faith and fair dealing, false promise, negligence, intentional and negligent misrepresentation, reformation, and violations of state consumer laws that cover unfair competition and insurance practices. However, it is the antitrust claims that allow plaintiffs to pursue what are known as treble damages, which can triple any damages awards and, according to the plaintiffs, are necessary to actually recoup the costs of rebuilding. In addition, if plaintiffs prevail in the reformation claims, State Farm and other insurance companies could be forced to rewrite their insurance contracts and cover a small significant portion of homeowners rebuilding costs. Contact Our Florida Insurance Litigation & Bad Faith Defense Attorneys The law dictates that homeowners must ensure that their policy limits are adequate – that they review their policy limits carefully and consider insuring one’s property for more than in order to address increasing costs of labor and construction. Our Tampa insurance litigation attorneys represent insurance companies of all types in defending against bad faith and other claims. Contact us today at HD Law Partners to find out more about our services. Resource: courthousenews.com/antitrust-claims-against-state-farm-unlikely-to-advance/ Florida Court Finds That Hurricane Insurance Company Did Not Act in Bad Faith in Outdoor Grounds Policy Endorsement Posted in Insurance Litigation | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us