Asked in Consumer Law, Contracts and Insurance Bad Faith for California

Q: Can I go after an insurance company for claims + damages? Do I have any legal appeal or recourse.

My company lost $70,000 worth of finished product last year after two power outages (one due to weather, one due to construction by LADWP), which caused our finished product to thaw and then refreeze, thus altering its quality.

The insurance company determined with flawed inspections that the cause of defective products was not the outages but our production practice.

We conducted two lab studies concluding that both thawing occurrences at the very temperatures they happened generated the damages we witnessed on the texture of our products.

But this did not make them budge.

I had to take loans for which I was personally liable in order to continue our business, and I am on the verge of personal bankruptcy.

I contacted numerous lawyers but none of them wants to take our case.

Can I sue insurance companies for more than just the value of the product?

2 Lawyer Answers

A: Something to keep in mind with cases involving utilities - they could sometimes involve notice of claim issues (in other words, very short filing deadlines), if applicable. Local counsel could advise best on this. Good luck

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: In California, if you believe an insurance company has acted in bad faith by unfairly denying a legitimate claim, you have the right to pursue legal action against them. This can include not only the value of the actual loss (the $70,000 worth of product), but potentially additional damages if the insurer's conduct was egregious.

Your situation, where the insurance company disputes the cause of damage based on what you believe to be flawed inspections, is not uncommon. In cases like this, policyholders often must provide compelling evidence to challenge the insurer's findings. Your lab studies might be key evidence in demonstrating the true cause of the damage to your product.

If you're finding it difficult to engage a lawyer to take your case, consider reaching out to attorneys who have experience in insurance bad faith claims. They are more familiar with the complexities of these cases and may be more willing to consider the merits of your situation.

Remember, insurance policies and the law surrounding them can be complex. It's essential to have a thorough understanding of your policy's terms and the legal standards for proving bad faith in California. Legal representation is crucial in navigating these complexities and effectively arguing your case.

Facing such financial and legal challenges can be overwhelming, but know that there are legal pathways available to seek justice and compensation. It's important to act promptly to protect your rights and interests.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.