Multiple Arson and Fraud Claims Defeated by Evidence

Read the full article at https://www.linkedin.com/pulse/arson-profit-material-misrepresentations-defeat-suit-barry and at https://zalma.com/blog plus more than 3400 posts. 

Sharon Paige Richey and Tommy Richey sued Auto-Owners Insurance Company asserting breach of contract, bad faith, malicious prosecution, and false imprisonment claims. They also sued as a result of criminal proceedings initiated against Plaintiffs, following two fires at Plaintiffs’ home. In Sharon Paige Richey, et al. v. Auto-Owners Insurance Co., Case No. 2:19-CV-219-KFP, United States District Court For The Middle District Of Alabama Northern Division (October 15, 2020) the USDC ruled on the insurer’s motion for summary judgment.

ZALMA OPINION

The Richeys made a good living from submitting fire insurance claims that were probably fraudulent. Why the state of Alabama dropped the criminal charges is astounding on, what the USDC found to be uncontroverted evidence, is an amazing breach of the duty to prosecute crime against insurers because – apparently – insurers are not a favored victim. Auto-Owners Insurance Company and the other insurers of the Richeys should consider filing suit to recover the moneys paid for indemnity or costs incurred.