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Estate entitled to hearing on cause of fire

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A plaintiff is entitled to a hearing on whether vandalism caused the fire at an unoccupied home, the 7th Circuit Court of Appeals ruled today. The District Court never made a finding on the investigation that indicated it may have been burglars who started the fire.

In the Estate of Wavie Luster v. Allstate Insurance Co., No. 09-2483, Rick Gikas, personal representative of the estate, appealed summary judgment for the insurance company on his breach of insurance contract suit. Allstate insured Wavie Luster's home. The widow was injured in a fall and moved into an extended-care facility in October 2001. Gikas became her power of attorney and told the insurer to bill the premiums to his law office. She never returned the house and died nearly five years later. Three months after her death, a fire caused extensive damage to the unoccupied house. Gikas submitted a claim on behalf of the estate. Allstate then discovered the home had been empty that entire time and denied the claim. Allstate continued to bill Gikas, and Gikas paid claims for two more years after the fire until Allstate cancelled the policy retroactively to November 2001 and returned the premiums paid since then.

Part of the policy says there's no coverage for any loss consisting of or caused by any substantial change or increase in hazard, if it's within the control of the insured; and there's no coverage for loss caused by vandalism if the dwelling is vacant or unoccupied for more than 30 consecutive days immediately prior to the vandalism. The policy also requires an insured to notify the company of any change in occupancy in the dwelling.

The District judge ruled the duty of notification had been breached but based his grant of summary judgment on the increase in hazard portion of the policy by leaving the house unoccupied.

Based on Allstate's policy terms, if a homeowner went on a 31-day trip and a fire occurred during that time, the insured wouldn't be covered. It implies if you are away a lot, your coverage lapses. There is also the chance a homeowner put in special precautions to keep the house safe while away.

"There is no rule that moving out of a house per se increases the hazards against which the insurance company has insured you," wrote Judge Richard Posner.

Gikas is entitled to a remand because it's unknown whether vandalism caused the loss. Allstate is also entitled to a hearing on the applicability of the vandalism exception should the hazard exclusion be found inapplicable.

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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