News & Analysis as of

Cash Value Insurance Litigation

Cozen O'Connor

Fifth Circuit Holds That Sales Tax is Not a Component of Actual Cash Value

Cozen O'Connor on

Ending a putative class action, the United States Court of Appeals for the Fifth Circuit examined policy language and two statutes to hold that an insurer does not owe sales tax on top of an actual cash value payment. The...more

Cozen O'Connor

South Carolina Allows Depreciation of Labor Costs In ACV Calculation

Cozen O'Connor on

Insurers in South Carolina may now depreciate both labor costs and material costs when determining the “actual cash value” (ACV) owed to policyholders for property damage....more

Butler Weihmuller Katz Craig LLP

South Carolina Permits Depreciation Of Labor When Calculating ACV

In Butler, et al. v. The Travelers Home and Marine Insurance Co., separate fires damaged the homes of Miriam Butler and Joseph Stewart. Each home was insured by a Travelers-related insurance company (collectively,...more

Cozen O'Connor

PA Supreme Court Holds General Contractor Overhead and Profit Can be Withheld From ACV Payments

Cozen O'Connor on

On August 18, 2020, the Supreme Court of Pennsylvania held, in a 4-3 decision, that insurer, Truck Insurance Exchange, was entitled to withhold general contractor overhead and profit expenses (“GCOP”)...more

Butler Weihmuller Katz Craig LLP

Subro Sense - The ABC's of RCV and ACV

Oftentimes, third-party liability adjusters will refuse to pay the full amount of the “Repair Cost Value” (“RCV”) of the damages included in the subrogation demand, and contend that they only owe “Actual Cash Value” (“ACV”),...more

Kilpatrick

NC Supreme Court Gives Green Light for Insurers to Depreciate Labor Costs

Kilpatrick on

Accardi v. Hartford Underwriters Ins. Co., ___ N.C. __ , No. 42A19 (Feb. 28, 2020) - The North Carolina Supreme Court nixed a putative class-action lawsuit against a property insurer and validated the insurer’s untested...more

Cozen O'Connor

Pennsylanvia Supremes to Decide Whether Actual Cash Value Includes General Contractor Overhead and Profit

Cozen O'Connor on

Insurance companies may no longer be allowed to rely on clear policy language that expressly excludes general contractor overhead and profit (“GCOP”) from actual cash value payments.  The Pennsylvania Supreme Court recently...more

Carlton Fields

Tennessee Supreme Court Holds That Replacement Cost Less Depreciation Does Not Allow for Depreciation of Labor When Calculating...

Carlton Fields on

Insurance policies are designed to indemnify an insured by putting the policyholder in the same position he or she would have been in had no loss occurred. In the context of property insurance policies, damaged property is...more

Butler Weihmuller Katz Craig LLP

Pennsylvania court rules insurer may still be responsible to pay RCV even if repairs never completed.

In situations where a property insurer denies coverage, the insured often complains that it is faced with a difficult dilemma – use its own money to fund repairs or avoid making repairs and risk having its recovery limited to...more

Robinson+Cole Property Insurance Coverage...

Scope of Recoverable Damages: District of New Jersey Finds Insureds Not Entitled to Replacement Cost Value Until Damaged Property...

Property insurance policies typically require that the insured repair or replace damaged property before recovering on a replacement cost value (RCV) basis. ...more

Robinson+Cole Class Actions Insider

Labor Depreciation Class Action: New Eighth Circuit Decision

This week the Eighth Circuit issued its long-awaited decision in a class action against State Farm involving the “labor depreciation” issue that I have covered extensively on this blog. State Farm prevailed on both the merits...more

Butler Weihmuller Katz Craig LLP

The ABC's of ACV in Subrogation Claims

Oftentimes, during the course of a subrogation claim, third-party liability adjusters will refuse to pay the full amount of the “Repair Cost Value” (“RCV”) of the damages demanded, and contend that they only owe “Actual Cash...more

Robinson+Cole Class Actions Insider

Class Action Involving Application of Deductible to Actual Cash Value Payment

An emerging issue in class action litigation against the insurance industry involves an attempt by plaintiffs’ attorneys to argue that insurers should not be permitted to apply any deductible to payments made on an actual...more

Cozen O'Connor

Depreciation of Labor Costs When Determining Actual Cash Value: Henn v. American Family

Cozen O'Connor on

In February, the Nebraska Supreme Court held that it is acceptable for insurance companies to depreciate labor costs when determining the actual cash value (ACV) of damaged property, even when the insurance policy does not...more

Butler Weihmuller Katz Craig LLP

Nebraska Supreme Court Rules that an Insurer Can Depreciate Labor in Determining Actual Cash Value

Property policies typically provide, if there is coverage, that the insured can recover for the costs to repair or replace the property damaged by loss. But when an insured does not repair or replace the damaged property (or...more

Zelle  LLP

Texas Court Talks Insurance And Actual Cash Value

Zelle LLP on

When an insured suffers a property loss, the insurance policy defines the parameters of recovery. Typically, a property insurance policy’s default valuation provision for a property loss is the actual cash value of the...more

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