State Farm Can't Factor Labor Into Loss Value, Ill. Court Says

Law360 (July 27, 2020, 9:31 PM EDT) -- An Illinois appellate court ruled Friday that state law does not automatically allow insurers to depreciate the cost of labor in calculating the actual cash value of a loss, resolving a question in a putative class action that accuses State Farm of undervaluing claims through its homeowners policies.

The depreciation of labor costs is a novel issue for Illinois courts, the appellate panel said. It concluded that a provision of the Illinois Administrative Code governing replacement costs deals only with tangible property and not services like labor. 

State Farm had contended that a provision of the Illinois Administrative Code provides that...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!