November 27, 2007

ALLSTATE AND STATE FARM SUED FOR CONSPIRACY

The Louisiana Attorney General, Charles Foti, recently filed suit against Allstate and State Farm, accusing the two companies of conspiring to limit payments to policyholders after Louisiana was pounded by hurricanes Katrina and Rita. The lawsuit alleges that the two companies worked together to manipulate damages estimates and to low ball claimants who suffered damages. Specifically the lawsuit alleges that the companies edited engineering reports and delayed payments, forcing policyholders to go to court to challenge estimates. In the event Mr. Foti needs any help with these varmints, he should get in touch with Mississippi Senator Trent Lott. Senator Lott recently pledged a solemn vow to go medieval on those nasty insurance companies for the way they have mistreated policyholders.

September 12, 2007

ILLINOIS TEACHER NEEDS TO READ UP ON BILL OF RIGHTS

Steve and Kelly D'Allesandro are VERY angry with their son's junior high school dean. With very good reason. They filed a federal lawsuit against the school arising out of an odd series of events last year. The saga started back in 2006 when their son Tyler, a student at a suburban Chicago junior high school, inadvertently brought a knife to school in his backpack. The knife was from his dad's workshop and Tyler claimed he had no idea how it got into his backpack. When Tyler noticed it at school, he pointed the knife out to friend. The friend then got hold of the knife. A third boy[who Tyler did not know]grabbed the knife and allegedly brandished the knife at other students. Tyler's friend go the knife back, and got it back in the Tyler's backpack. Nothing else happened. Tyler went home, thinking the episode was over.

The following morning, a school parent made a complaint to Michael Brumbaugh, the Dean of the school. And this is where it gets weird. According to a lawsuit filed by the D'Allesandros, Brumbaugh rounded Tyler up and then drove him to his home. Brumbaugh then demanded that Tyler allow him to enter the home. Brumbaugh then went into the house and looked around for the knife. While he was doing so, Mrs. D'Allesandro was in the bathroom taking a shower. According to the D'Allesandros, Brumbaugh was informed that Mrs. D'Allesandro was in the shower. Not to be deterred, Brumbaugh continued searching for the knife. When he found it, he took the knife and Tyler back to school. He later called Mrs. D' Allesandro and told her to come pick up her son at school. According to the lawsuit, he neglected to advise he had been rummaging around in the home.

Shortly thereafter the D'Allesandros complained to the school about the way this episode was handled. They were then advised that Tyler was suspended for 10 days. They continued to complain and the School District continued to ratchet up Tyler's punishment. Ultimately, Tyler was expelled.

Should the kid be punished for bringing a knife to school? Absolutely, even if he did so unknowingly[which is hard to believe]. But should the Dean of the school be allowed to allegedly: 1) unilaterally take a kid out of school; 2) drive that kid home; 3) enter the home without permission from the homeowner; 4) search the home, again without permission from the homeowner[who, may I remind the reader, was in the shower while an adult male she likely did not know was in her home]; 4) seize evidence from inside the home; 5) drive the kid back to school and 6) never tell Mom he had done any of the above? I think not. Perhaps someone at the school could drag out a copy of the Bill of Rights[assuming the Dean didn't suspend the Bill of Rights of course]and direct Mr. Brumbaugh's attention to the Fourth Amendment. Specifically the language about unreasonable searches and seizures. In the event the guy loses his job, he might want to look for work with Progressive Insurance. He sounds like their type of guy.

August 27, 2007

HOW LOW CAN PROGRESSIVE INSURANCE GO?

Pretty low, if the allegations made by an Atlanta couple prove to be true. Bill and Leandra Pitts, the couple in question, were injured in a 2004 auto accident. According to an recent article in the Atlanta Journal-Constitution, the insurance company involved, Progressive Insurance, established a new low while "investigating" the claims made by Mr. and Mrs. Pitts. According to the article, investigators for Progressive snuck into the Pitts' church in August of 2005, posing as prospective members. Then they slimed their way into a private confessional meeting at a church member's home, hoping to overhear a damaging admission from the Pitts about the auto case. After the Pitts learned of Progressive's tactics, they filed a lawsuit claiming invasion of privacy and fraud. Progressive's President and CEO, Glenn Renwick issued a statement acknowledging that the story appeared to have merit and apologizing for the actions of the investigators. Interestingly, Renwick's statement didn't mention what disciplinary action, if any, were taken against the investigators in question.

August 23, 2007

TRENT LOTT HAS AN EPIPHANY ABOUT INSURANCE ABUSES

Senator Trent Lott, the powerful Republican Senator from Mississippi, has seen the light. Lott, who, until very recently, was a longtime defender of insurance companies, is no longer. Senator Lott lost his home to Hurricane Katrina in 2005. He filed a claim with his insurer, State Farm. The "Like a Good Neighbor" people denied coverage on Lott's claim, as well as the claims of tens thousands of other homeowners. State Farm claimed Lott's home, and the other homes, were actually damaged by flooding, a non-covered risk under the policies Lott filed suit, litigated the case over a year, and only recently settled. That experience caused Lott to re-think his allegiance to insurance companies. He has now concluded that the insurance industry needs some reforms[gasp!!!]. To quote Senator Lott: "I'm like a woman scorned. I'm prepared to to continue to kick their fanny until the last day I'm alive on this Earth because they have mistreated too many people." Better late than never Senator.