State Farm, Farmers Face Class Actions Over Labor Costs

Law360, Los Angeles (January 6, 2014, 4:15 PM EST) -- State Farm Fire & Casualty Co., Foremost Insurance Company and Farmers Insurance Exchange have been hit with nearly identical class actions in Arkansas federal court accusing the insurers of shorting policyholders by depreciating labor costs in property loss compensation.

Named plaintiffs Jeff Dennington, John and Joyce Shipp, and William and Debra Keller and Peggy Byrge all argue in their complaints that they were stiffed when their insurer didn’t fully compensate them for the labor costs of repairing or replacing damaged property.

The putative class actions, which...
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