Legal Question in Insurance Law in California

We are a rental house that rents lighting and grip equipment to the movie industry. The client has damaged many of our lights. We charged them for it. Our cost plus whatever mark up we felt covered our time to replace the item. Thier insurance company has come back to us and demanded that we show them our invoice for these items and have refused to pay us more than what we paid for it, Regardless of the time and money it will cost to go pick it up or have it shipped or barcode and put back into inventory and on and on...even tax that we paid they are refusing to pay!!!

Does the insurance company have a right to demand to see our invoices (1) and do they have a legal right to not pay what we are asking for our gear reagardless of what we paid (2)?


Asked on 10/26/10, 3:45 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

You are in the business of renting and selling stage gear, you are entitled to recover at the retail rate at which you regularly sell to retail purchasers, including your regular markup, and the insurance company has no business jerking your chain. Have your lawyer or claims adjuster write to the insurance company and threaten to sue.

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Answered on 10/31/10, 4:01 pm
Herb Fox Law Office of Herb Fox

You should not be negotiating with the client's insurance company. You should be negotiating and making demands on the client. What amount their carrier indemnifies them for is their problem; if you have legitimate damages and their carrier refuses to pay, for whatever reason, the client must dispute that with the insurer.

I suggest that you consult with an attorney. If the amount you are claiming is $7,500 or less, just file a small claims action against the client and see what happens. Your judgment will be against the client, not its insurance company.

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Answered on 11/01/10, 9:11 pm


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