State Farm Escapes Class Action Over Depreciation Formula
By Juan Carlos Rodriguez
Law360, New York (September 24, 2013, 1:29 PM ET) -- A federal judge on Monday tossed a proposed class action alleging State Farm Fire & Casualty Co. improperly calculates depreciation when making initial claim payments for damaged personal property, finding the insurer’s action was consistent with the terms of the policy.
Plaintiff Fred Gee, who submitted a claim to State Farm after a house fire, alleged the insurer breached its policies when calculating the amount owed on his and other claims by improperly including in the depreciation deduction a percentage of the applicable sales tax. Gee...