ILNews

7th Circuit affirms District Court in attorney house fire case

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals has affirmed a grant of summary judgment in favor of an insurer because an attorney and his wife failed to produce documents the company requested repeatedly.

In Harry Foster III and Linda Foster v. State Farm Fire and Casualty Company, No. 11-3100, Harry and Linda Foster, their two children, Harry’s father and the family’s eight dogs were away when a fire severely damaged the family’s home on Jan. 3, 2009. Linda Foster submitted a claim to State Farm the next day under the family’s homeowners’ policy.

The insurer learned that the Fosters had at least two businesses, held numerous business and personal accounts, and were involved in multiple lawsuits. State Farm promptly requested documents including blueprints, utility bills and receipts. The insurer sent a letter to the Fosters at the end of January, reminding them of their obligation to submit requested documents, and did so again in March.

By mid-March, State Farm’s fire investigator concluded the fire was set intentionally and referred the claim to its Special Investigative Unit.

The Fosters’ deadline to submit proof of loss was May 2, 2009, but they requested a 60-day extension, which State Farm granted. A few days later, the Fosters asked for more time and State Farm again extended the deadline. On Aug. 5, the couple submitted nearly 1,000 pages of documents.   

On Aug. 13 and 15, Harry Foster sat for his examination under oath; Linda Foster’s EUO was on Aug. 26. Based on statements the couple made about previously undisclosed bank accounts and business dealings, State Farm requested additional documents, dating back to 2002.

Citing Morris v. Economy Fire & Cas. Co., 848 N.E.2d 663 (Ind. 2006), the 7th Circuit wrote that the Fosters’ duty was not only to give State Farm documents they possessed, but to acquire and deliver other documents related to their financial condition.

“As a matter of law, the Fosters’ failure to produce requested documents or even explain why they could not, and their related failure to complete Mrs. Foster’s EUO, materially breached the contract,” Judge John Tinder wrote on behalf of the circuit court.
 

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. why is the State trying to play GOD? Automatic sealing of a record is immoral. People should have the right to decide how to handle a record. the state is playing GOD. I have searched for decades, then you want me to pay someone a huge price to contact my son. THIS is extortion and gestapo control. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW.

  2. I haven't made some of the best choices in the last two years I have been to marion county jail 1 and two on three different occasions each time of release dates I've spent 48 to 72 hours after date of release losing a job being denied my freedom after ordered please help

  3. Out here in Kansas, where I now work as a government attorney, we are nearing the end of a process that could have relevance in this matter: "Senate Bill 45 would allow any adult otherwise able to possess a handgun under state and federal laws to carry that gun concealed as a matter of course without a permit. This move, commonly called constitutional carry, would elevate the state to the same club that Vermont, Arizona, Alaska and Wyoming have joined in the past generation." More reading here: http://www.guns.com/2015/03/18/kansas-house-panel-goes-all-in-on-constitutional-carry-measure/ Time to man up, Hoosiers. (And I do not mean that in a sexist way.)

  4. This is why it is important to consider Long term care insurance. For you and for your loved ones

  5. I am terrified to see Fracking going on not only in Indiana but in Knox county. Water is the most important resource we have any where. It will be the new gold, and we can't live without it and we can live without gold. How ignorant are people?

ADVERTISEMENT