Insurance
Jul. 31, 2002
Court Reverses $10 Million Award
LOS ANGELES -A state appellate court reversed a nearly $10 million award against Allstate Insurance Co. on Monday because the plaintiffs' attorney implied to the jury during closing arguments that low-level fraud was OK - and that the trial court condoned it.
The underlying lawsuit involved a house fire in Lancaster that Allstate refused to cover because it said the Cassim family submitted fraudulent insurance claims. Cassim v. Allstate, B139975 (Cal. App. 2nd Dist. July 29, 2002).
On two or three days during the 33-day trial, the court allowed members of the jury to sign in and then go home when the jury was not actually in session, so they could receive paid credit from their employers for being there.
At closing arguments, the attorney for the Cassims told jurors that their actions were similar to the Cassims' alleged behavior.
"Counsel knowingly exploited the fact that many employers would have refused to pay for jury service on those days when the jury was not in session even though the jurors had 'been given credit' for appearing. Therefore, when the jurors retired to deliberate, they were conscious of the fact that whatever else the Cassims had done, it was no worse than what the jurors, with the court's approval, had done," Justice Aurelio Munoz wrote in the published opinion.
The 2nd District Court of Appeal in Los Angeles voted 2-1 to overturn the award. Justice Earl Johnson Jr. dissented.
Katherine Gaidos
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