Legal Question in Insurance Law in California

Car destroyed by fire 10 mins after leaving the shop.
A car left at the shop for removal of a high-end stereo prior to resale was destroyed by an electrical fire that originated in the dash. Initial discussion with the adjuster said that the incident would be covered by their insurer. Now, a year later, they are claiming no responsiblity and refusing payment. A series of events is occurring from their effort to deplete my resources, or my desire, to recover losses. I was told, ''What are you going to do about it, try to fight an insurance company?'' Unfortunately their tactics are taking a toll on my resources. I do have statements from their own adjuster indicating that the company is trying to ''screw'' me after initially agreeing to compensate. Because of their initial response a long period of time elapsed, and it was months before requests for payment were finally denied outright. As a result of this time lapse, and what I was led to believe, I now am left without some crucial evidence. What course of action can I take against this? Is there some method preferred when going after a ''bad faith'' situation like this? Thanks

Asked on 10/26/05, 10:35 pm

3 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

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Re: Car destroyed by fire 10 mins after leaving the shop.

You should consult with a local insurance specialist, but the general rule in California is that only the insured can sue their own carrier for bad faith. You can still sue the shop for the property damages, but a suit against their insurance carrier for bad faith is probably not an option.

Answered on 11/02/05, 2:25 pm

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Aaron Davis Law Office of Aaron M. Davis

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Re: Car destroyed by fire 10 mins after leaving the shop.

I was not clear if you are the owner of the shop or the car. If you are the owner of the car, is the loss covered under your auto insurance policy? If not, you may sue the shop, but probably don't have a bad faith suit against the shop's insurer. What is the value of your loss? Also, is there a contract with the shop? If so, it may contain an attorney's fees provision that would make this case more appealing to an attorney.

Answered on 11/02/05, 2:33 pm

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