By: Shernoff Bidart Echeverria LLP
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Food truck case ends in settlement
SBE represented a small businessman who owned a food truck in Los Angeles. The truck burned down while it was parked in a lot overnight. After the man’s insurance company, Progressive, refused to honor the terms of the policy, the owner turned to SBE attorney Howard Shernoff for help.
The lawsuit that was filed accused Progressive of deceptively marketing and selling “stated amount” auto insurance coverage, which according to the suit, allowed the company to reap inflated premiums yet pay out less than full benefits on claims.
The lawsuit alleged that the insurance policy used ambiguous terms so that the true meaning of “stated amount” was not clear – to the customer or even to the selling agent. Said Shernoff, “For our client, it turned into a ‘damned if you do, damned if you don’t’ scenario. He wound up paying a higher premium, but was offered a lower – in this case, half – amount on his claim.” Having received a date for trial, the parties agreed to a confidential settlement.