A successful pleading against an insurance adjuster was found in a Western District, Austin Division opinion issue in May 2017. The opinion is styled, Affordable Portable Structures, Inc. and JFJ Group, Inc. v. The Cincinnati Insurance Company and Alfred Gray.
Affordable was insured by Cincinnati when a storm caused damage to property owned by Affordable. Cincinnati hired Alfred Gray to adjust the claim, who hired Rimkus Consulting Group, to prepare a report. According to Affordable, Rimkus is known to provide results oriented reports that are favorable to insurance companies and minimize damage estimates.
Affordable hired a consultant who estimated Affordable’s damages at $698,111.69. Gray turned in an estimate for $25,935.38 — less than 3.5% of the figure that Affordable’s consultant estimated. Affordable alleged that Gray is an inexperienced adjuster and, as such, knew or should have known that the Rimkus report vastly underestimated the amount of damage caused to the property. Accordingly, Gray’s decision to conduct no further investigation was unreasonable and did not constitute a good faith attempt to effectuate a prompt, fair, and equitable settlement.