Southern Realty Mgmt, Inc. v. Aspen Specialty Ins. Co., et al.
(N.D. Ga, April 28, 2009)
The insurers contended that the policyholder violated the policy provisions when it concealed the sale of the subject damaged property on the proof of loss and refused to cooperate with insurers by turning over all sale documents. The court noted that under Georgia law, an insurer has a compelling interest in, and right to, an accurate proof of loss. Also, a policyholder may not unilaterally determine that some of its books are not necessary to an investigation, nor may they withhold them on the grounds of confidentiality; nor is an insurer under any obligation to provide an explanation for its requested documents absent policy language requiring it to do so. The court held that the insurers had a right to inspect plaintiffs’ books and records and that the policyholder refused to provide material information to the insurers. Thus, the policyholder breached the terms of its policies and were barred from recovering on its claim.
By Thomas F. Segalla and Paul Steck