Foremost Insurance Company, is taking their case to the Arkansas Supreme Court to appeal a Circuit Court order to produce all of their claim files. The insurance company estimates that producing 600,000 of their insurance claims files will cost them approximately $45 million.
The lawsuit involves allegations that after loss or damage to the insured’s property, the insurance company did not disclose or pay the general contractors’ overhead and profit. While the insurance companies paid the claims to the homeowners, the plaintiffs say they are entitled to the additional funds.
The punitive class action suit was filed in the Circuit Court of Miller County, in Arkansas on September 8, 2004.
In 2005 the defendants tried to move the case to federal court but a federal judge remanded it to the Miller County Circuit Court.
The discovery dispute is not new and has been occurring in this case between the plaintiffs and various insurance companies for more than a year. In a hearing on July 16, Judge Johnson ordered Foremost Insurance to produce all of its claim files, even though the defendants estimated the production cost at $45 million.
Seeking a ruling by the Arkansas Supreme Court as to “whether a nationwide class can or should be certified under the laws of 51 jurisdictions,” Foremost Insurance has filed a motion to stay with the Miller County Circuit Court.