Articles Posted in Bad Faith Insurance

Post #1 image. 2013-01-03.jpgMississippi’s Governor Phil Bryant has been trumpeting the state’s tort reform laws as a major economic development according to papers filed in federal court. The governor made the claims in a filing before the court that will decide the constitutionality of the state’s $1 million cap on non-economic damages.

The case, which began in 2006, will decide whether the state’s cap on damages is unjust. The cap was put into place years ago after legislators complained that verdicts in the state had gotten too large, too fast and led to unfairly large awards for plaintiffs. The updated brief on the part of Governor Bryant filed in support of the measure was meant to inject life into the case after the 5th Circuit told attorneys for both sides that briefs needed to be updated.

The case is not expected to be resolved until sometime later this year. Attorneys have said the complexity of the case and possible further oral arguments may drag the matter out well into the New Year. It’s also possible that the 5th Circuit will ask for additional briefs on certain specific legal issues.

The case was started in 2006 after a Mississippi woman was injured in an accident with a Sears truck near Philadelphia, MS. A jury in 2008 found that Sears was liable and awarded the woman $4 million in damages, though the verdict never identified which damages were noneconomic. It was later decided that $2.2 million of the overall verdict was noneconomic; a number that was later reduced by a federal judge to $1 million to align with Mississippi’s law.
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Carman The Coon.pngRaccoons 1
Allstate Policy Holder 0

Although this should come as no surprise to anyone who has had the great misfortune to be forced to file a claim with them (at least 100,000 Coast resident from Katrina agree with me on this regardless of political partisan), that despite its commercial to the contrary, Allstate a/k/a Allsnake is refusing to cover a claim in Mississippi for damages due to a raccoon infestation. I guess Allstate itself is the cut rate company, just with 5 times the premiums.

A family of raccoons nested up in my client’s (from Madison County) attic and did exactly what a raccoon does-destroyed the place and defecated everywhere. P.S., this is JUST LIKE THE COMMERCIAL! My client called her Brandon, MS agent as she thinks she has coverage since this exact issue is featured in Allstate Mayhem commercial. (See Video Link Below). But, instead of getting the “good hands” of its neighbor, she gets the full force of a punch to the stomach and a denial of her claim.

Allstate sent her a denial letter refusing to pay for (1) removal and replacement of “contaminated” insulation and (2) cleanup of the mess caused by raccoons in her attic because Allstate says there is the following exclusion language:

“Losses We Do Not Cover under Coverages A & B: Vapors, Fumes, acids, toxic chemicals, toxic gages, toxic liquids, toxic solids, waste materials or other irritants, contaminants or pollutants.”

All they were willing to pay for was the elimination of the animals and repairing the fan where the raccoon(s) entered. The insurance company denied the rest of the work based on the fact that the policy does not cover toxic fumes, which is totally bogus.

Are you serious????? When she first contacted me, I thought I remembered a “Mayhem” commercial involving raccoons!!!
And here’s the damn commercial!!!

Pollution exclusion, for Raccoon waste and damage. REALLY, ALLSNAKE, REALLY? Needless to say, a lawsuit was immediately filed for insurance bad faith denial, breach of contract, deceptive and misleading advertising, etc.!
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