Labor Depreciation
Franklin v. Lexington Ins. Co.
Year: 2022
Court: Missouri Court of Appeals
Case Number: WD84816
Issue:
  • Labor Depreciation
State:
  • Missouri

Building owners purchase property insurance to protect themselves if their property is damaged by fire, hail, tornadoes, or other often catastrophic events. In the case of homeowners, adequate payment of insurance policy benefits is often what stands between them and homelessness after a disaster. Insurers…
Walker v. Auto-Owners
Year: 2022
Court: Arizona Supreme Court
Case Number: CV-21-0236-CQ
Issue:
  • Labor Depreciation
State:
  • Arizona

Building owners purchase property insurance to protect themselves if their property is damaged by fire, hail, tornadoes, or other often catastrophic events. In the case of homeowners, adequate payment of insurance policy benefits is often what stands between them and homelessness after a disaster. Insurers…
Sproull v. State Farm Fire and Casualty Co
Year: 2021
Court: Supreme Court of Illinois
Case Number: 126446
Issue:
  • Labor Depreciation
State:
  • Illinois

In its brief, UP notes that building owners purchase property insurance to protect themselves if their property is damaged by fire, hail, tornadoes, or other often catastrophic events. In the case of homeowners, adequate payment of insurance policy benefits is often what stands between them…
Labrier v. State Farm Fire and Cas. Co.
Year: 2016
Court: U.S. Court of Appeals, 8th Circuit
Case Number: 16-3185/16-3562
Issue:
  • Labor Depreciation
State:
  • Missouri

Depreciation of labor in an actual cash value payment is fundamentally at odds with the the purpose of insurance – to indemnify the policyholder in case of a loss. Physical components such as shingles, for example, do lose integrity and value over time due to…
Cranfield v. State Farm Fire & Casualty Company
Year: 2019
Court: United States Court of Appeals for the Sixth Circuit
Case Number: 19-3004
Issue:
  • Labor Depreciation
State:
  • Ohio

In its brief, UP argues that labor should not be depreciated in determining actual cash value. The conclusion that labor should not be depreciated does not change regardless of the method of calculating actual cash value (replacement cost minus depreciation or broad evidence rule). UP…
Mitchell v. State Farm and Casualty Company
Year: 2019
Court: UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT
Case Number: 3:17-cv-00170-MPM-RP
Issue:
  • Labor Depreciation
State:
  • Mississippi

In this amicus brief, UP argues that labor should not be depreciated by insurance companies in their determination of actual cash value. Many insurers do not engage in the practice of depreciating labor. For the insurance carriers who do depreciate labor, most use coverage forms…
Susan Hicks and Don Williams, Plaintiffs-Appellees, v. State Farm Fire & Casualty Company, Defendant-Appellant.
Year: 2018
Court: U.S. Court of Appeal, 6th Circuit
Case Number: Case No. 18-5104
Issue:
  • Labor Depreciation
State:
  • Kentucky

This amicus brief discusses the wrongful depreciation of labor, an insurer strategy to minimize benefit payments after a loss. An insurance contract must receive a reasonable interpretation consistent with the parties’ expression in the language of the contract. Depreciation is the reduction of tangible property…
Lammert et al v. Auto Owners Mut. Ins. Co.
Year: 2018
Court: Tennessee Supreme Court
Case Number: M2017-02546-SC-R23-CV
Issue:
  • Labor Depreciation
State:
  • Tennessee

Tennessee law upholds a policyholder’s reasonable expectations of coverage. Consistent with those principles, the cost of labor should not be depreciated. Depreciation of labor results in policyholders not receiving the full amount that they reasonably are entitled to under their actual cash value coverage, and…
Hicks v. State Farm Fire & Casualty Co.
Year: 2020
Court: United States Court of Appeals for the Sixth Circuit
Case Number: 19-5719
Issue:
  • Labor Depreciation
State:
  • Kentucky

This lawsuit concerns deficient actual cash value (ACV) payments. Plaintiffs challenge State Farm’s method of calculating ACV and, in large part, challenge State Farm’s depreciation of labor. In its brief, UP first argues that the “costs of repair or replacement” language in the ACV loss…
Accardi v. Hartford Underwriters Insurance Co.
Year: 2019
Court: Supreme Court of North Carolina
Case Number: 42A19
Issue:
  • Labor Depreciation
State:
  • North Carolina

In its brief, UP argues against the wrongful depreciation of labor. This issue has been litigated throughout the country, and states have been split on the outcome. For the carriers that do depreciate labor, many have filed coverage forms that expressly outline the practice. This…