A recent ruling in the case Village Northridge Homeowners Association v. State Farm Fire and Casualty Co. could prove to be a nightmare for insurers. To find out more about the case and its implications, Claims spoke with Barry Zalma, a California attorney who has been following the case.
Could you give our readers a brief summary of Village Northridge Homeowners Association v. State Farm Fire and Casualty Co.?
An insurer and its insured, a homeowners' association, settled disputed claims arising from the Northridge earthquake, with the insurer paying $1.5 million and the insured releasing the insurer from all claims or causes of action it had or may have arising out of its earthquake claim.
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