The federal district court agreed that a challenge to State Farm's practice of depreciating sales tax when calculating actual cash value (ACV) benefits payments to policyholders could go forward as a class action. Pitkin, et al. v. State Farm Fire and Cas. Co., 2025 U.S. Dist. LEXIS 134948 (July 15, 2025, N.
depreciation
Res Judicata Bars Insured from Challenging Insurer’s Use of Schedule to Deduct Depreciation from the Loss
By Tred R. Eyerly on
The insured was barred by res judicata from filing a second lawsuit challenging the insurer's method of establishing the amount of the loss. Burke v. GeoVera Spec. Ins. Co., 2024 U.S. App. LEXIS 9186 (5th Cir, April 16, 2024).
On August 29, 2021, Hurricane Ida caused wind damage to the…
Insured Makes Sufficient Claim For Actual Cash Value Payment
By Tred R. Eyerly on
The court denied, in part, the insurer's motion for summary judgment that argued the insured made an insufficient showing of entitlement to Actual Cash Value (ACV) payments under the policy. RR Restoration, LLC v. Empire Indem. Ins. Co., 2023 U.S. Dist. LEXIS 129388 (M.D. Fla. July 16, 2023).
Amblewood Condominium…
Judgment for Insurer Reversed Due to Failure to Establish Depreciation
By Tred R. Eyerly on
The trial court erred in placing the burden on the policyholder to establish depreciation in determining the actual cash value of the loss. SFR Serv., LLC v. Tower Hill Prime Ins. Co., 2023 Fla. App. LEXIS 3570 (Fla. Ct. App. May 26, 2023).
The insureds' roof was damaged by Hurricane…
Actual Cost Value Includes Depreciation of Repair Labor Costs
By Tred R. Eyerly on
The court granted the insurer's motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022).
Hurricane Laura damaged the insured's home.
Illinois Supreme Court Rules Labor Costs Not Depreciated to Determine Actual Cash Value
By Tred R. Eyerly on
The Illinois Supreme Court determined that a homeowner insurer may not depreciate labor costs in calculating actual cash value (ACV) after a loss under the policy. Sproull v. State Farm Fire and Casualty Co., 2021 Ill. LEXIS 619 (Ill. Sept. 23, 2021).
Plaintiff was insured under a homeowner's policy that…
South Caroline Holds Actual Cash Value Can Include Depreciation of Labor Costs
By Tred R. Eyerly on
Answering a certified question, the South Carolina Supreme Court held that the insurer could calculate actual cash value (ACV) by including an estimate of the depreciation of embedded labor costs. Butler v. Travelers Home & Marine Ins. Co., 2021 S. C. LEXIS 51 (S.C. May 12, 2021).
Two insureds had…
Labor Costs Not Excluded From Depreciation When Determining Actual Cash Value
By Tred R. Eyerly on
The court dismissed a class action suit against State Farm which sought to establish that a calculation of actual cash value (ACV) in a homeowners policy could not depreciate the cost of labor. Cranfield v. State Farm Fire & Cas. Co., 2018 U.S. Dist. LEXIS 199618 (N.D. Ohio Nov. 26, 2018)
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