Foran Glennon shareholder John Eggum discussed labor depreciation in the context of insurers’ determination of actual cash value, in connection with a recent Law360 article on the Arizona Supreme Court’s forthcoming decision in Gerald Walker et al. v. Auto-Owners Insurance Co.
John explained that State Supreme Courts in Oklahoma, Nebraska, Minnesota, North Carolina and South Carolina have rejected the argument that “depreciation” is an ambiguous term and shared that he hopes Arizona will join those states in connection with the Walker case that was recently argued before the Arizona Supreme Court.
It was only in the last few years that policyholder attorneys contrived the fallacy that labor can never be depreciated in connection with the determination of actual cash value under a property insurance policy. John has written about this argument at length for the Illinois Defense Counsel Quarterly and believes that it is illogical and should be rejected by the Arizona Supreme Court.
Read the full Law360 article here. (Subscription required)
John concentrates his practice on insurance coverage and bad faith litigation, and other commercial disputes. John has assisted insurance clients in a wide variety of first-party coverage and bad faith matters around the country, including by helping clients navigate pre-suit disputes, appraisal proceedings, and coverage and bad faith litigation through trial.