Express Textile Consultants Inc. v. General Accident
Published: May 27, 2000 | Result Date: Feb. 15, 2000 | Filing Date: Jan. 1, 1900 |Case number: 985056CBM Verdict – $1,447,710
Judge
Court
USDC Central
Attorneys
Plaintiff
Defendant
Sara M. Thorpe
(Nicolaides, Fink & Thorpe LLP)
Facts
Plaintiff Express Textile Consultants claimed significant losses resulting from a fire and subsequent
burglary at its business. Express then claimed defendant General Accident delayed payment of insurance
benefits and sued General Accident for bad faith. General Accident argued it was reasonable based upon the
on-going criminal investigation.
Eventually, General Accident paid over $1.2 million to Express in policy benefits. Afterwards, General
Accident discovered that Express had submitted falsified documents to support its claims. General Accident
then filed a counterclaim against Express for arson and fraud.
The trial court allowed General Accident to proceed with its fraud claim, and if unsuccessful, then the court
would have a second phase of the trial to consider the outstanding claims of arson and bad faith.
Damages
The plaintiff claimed fire and theft loss up to their insurance policy limits. Defendant/cross-complainant suffered economic loss through fraudulent claim on an insurance policy.
Other Information
The parties spent three hours in arbitration before Hon. William Burby, retired, of ADR Service. In a post-trial application, the court awarded defendant $28,500 in costs. At the present time, the ATF and Los Angeles Fire Department are conducting an ongoing investigation into the arson at the warehouse.
Deliberation
20 hours
Poll
12-0
Length
12 days
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