California Supreme Court
Dec. 8, 2012
Insurance company can pursue fraud suit regarding wildfire claims
Farmers Insurance Co. can pursue its lawsuit against two attorneys it accuses of organizing millions of dollars in fraudulent insurance claims against the company following a series of California wildfires.
By Emily Green
Daily Journal Staff Writer
Farmers Insurance Co. can pursue its lawsuit against two attorneys it accuses of organizing millions of dollars in fraudulent insurance claims against the company following a series of California wildfires.
The 2nd District Court of Appeal, Division 3 denied Burbank attorneys Neil R. Anapol and Robert B. Amidon's request to throw out the lawsuit on First Amendment grounds. The panel said the attorneys failed to show that their insurance claims constituted pre-litigation conduct that is protected by the anti-SLAPP law.
Farmers Insurance accuses the attorneys of violating state law by unlawfully procuring clients, splitting attorneys' fees, and submitting fraudulent insurance claims for payment of "materially excessive or outright sham 'smoke and ash' damage" under Farmers' homeowners insurance policies.
Legal experts said the case stands out as a relatively rare allegation of large-scale fire insurance fraud in wildfire-prone California.
Emily Green
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