3 Insurers Sue U.S. Over Wildfire Claims

Thickasabrick

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Thu Jun-15-06 08:35 PM
Original message

3 Insurers Sue U.S. Over Wildfire Claims

<http://www.guardian.co.uk/worldlatest/story/0,,-5889956,00.html>

Associated Press Writer

DENVER (AP) - Three insurers who paid out $7.04 million in claims stemming from the worst wildfire in Colorado history are suing the federal government.

The suit, filed Wednesday, claims that the Forest Service was negligent in the 138,000-acre fire, partly because of how it supervised forestry worker Terry Lynn Barton. She started the blaze when she burned a letter in 2002, despite a fire ban she was supposed to be enforcing.

The suit was filed by State Farm Fire & Casualty Co. Inc., Allstate Insurance Co. and three companies that are part of The Hartford Financial Services Group Inc.

The government had not been served with the lawsuit as of Thursday afternoon, and could not yet comment on it, spokesman Jeff Dorschner said.

Republicans want to eliminate "frivolous" lawsuits. I wonder if this will qualify.

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enough

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Thu Jun-15-06 10:28 PM
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1. The article does not say what federal court this was filed in.

Do you happen to know?

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Robb

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Thu Jun-15-06 11:47 PM
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2. Interesting, to say the least

I wonder what the liability could possibly be. I would assume they'd have no case (if they've got any to begin with) unless Barton set her fires on the clock. :shrug:

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lynne

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Fri Jun-16-06 08:02 AM
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3. Barton has already been found guilty and sentenced in this matter -

- She is serving a 6 year Federal sentence now and appealing a 12 year state sentence. With those convictions in hand, this is a slam-dunk for the insurance companies.

Subrogation is a normal insurance practice of going back to the individual responsible for the loss to collect damages paid. Example: Someone slams into your car. Your insurance company pays to get your car fixed. Your company then files a claim against the person who hit you to recover the damages they paid to you.

$7.04 Million with a responsible party who has plead guilty? Far from frivolous.

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