Pa. Panel Nixes Contractor Fee Requirement In Damage Award

Law360 (August 24, 2018, 7:49 PM EDT) -- A Pennsylvania state appeals court on Friday upended a win for two homeowners who filed putative class actions alleging Truck Insurance Exchange wrongfully omitted estimated contractor overhead and profits from property damage settlements, ruling that the policy required those costs to be incurred and paid out by policyholders before reimbursement.

The three-judge panel’s decision overturned a Pennsylvania Court of Common Pleas judge’s finding that state law required estimated general contractor overhead costs and profit be included in settlements paid to settle damage claims filed by homeowners. The appeals court invoked its 2003 decision in another insurance row, Kane v. State Farm...

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