Tenn. Justices Side With Policyholders In Labor Costs Row
Law360 (April 16, 2019, 6:50 PM EDT) -- Tennessee's highest court ruled Monday that Auto-Owners Mutual Insurance Co. can only consider a decline in the cost of building materials when calculating how much to pay on homeowners' property damage claims, rejecting the insurer's bid to also trim the amounts owed for labor costs.
Ruling on a certified question from a federal court overseeing a putative class action against Auto-Owners, a unanimous Tennessee Supreme Court said the insurer cannot reduce repair labor costs when calculating the "actual cash value" owed to policyholders whose homes are damaged or destroyed.
According to court documents, actual cash value is the total cost of...
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!