State Farm’s Oklahoma Discovery Fight | Property Insurance Coverage Law Blog

What happened

It also said approximately 1.8 million documents, totaling more than 518 gigabytes, had already been collected in Hursh; that discovery-vendor expenses had exceeded $1 million; and that completing one requested review could require 100 attorneys working ten-hour days for nearly 179 business days at a projected cost of approximately $11.6 million. Those materials allegedly include discussions of billions of dollars in reduced indemnity payments, calculations suggesting that a one-percentage-point change in claim outcomes could represent approximately $78.8 million, and management review procedures aimed at reducing full-roof-replacement decisions. The motion argues that the Attorney General’s Oklahoma Racketeer-Influenced and Corrupt Organizations Act claim is quasi-criminal and that due process does not permit lawyers with financial interests in related private lawsuits to exercise prosecutorial authority.

Key details

• Those materials allegedly include discussions of billions of dollars in reduced indemnity payments, calculations suggesting that a one-percentage-point change in claim outcomes could represent approximately $78.8 million, and management review procedures aimed at reducing full-roof-replacement decisions.
• The motion argues that the Attorney General’s Oklahoma Racketeer-Influenced and Corrupt Organizations Act claim is quasi-criminal and that due process does not permit lawyers with financial interests in related private lawsuits to exercise prosecutorial authority.
• The court has not yet ruled, but the question is obvious: if a consultant helped build the measuring stick State Farm invokes as an industry standard, should the consultant’s own files be examined to determine how that stick was constructed?

Why it matters to restoration

This belongs on an operator’s radar because insurance behavior sets the rules for documentation, scope disputes, cash flow and customer expectations. If the article points to a carrier, court or coverage trend, the practical question is what proof your next file needs before the argument starts.

What to check next

Check whether your estimates, photos, notes and customer updates would survive the same dispute described in the article.

Read original article ↗