Late Filing Defeats Suit
Barry Zalma
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In Waseem Daker v. State Farm Fire And Casualty Company, No. 21-3210, United States Court of Appeals, Seventh Circuit (February 3, 2023), more than a year after he suffered property damage, Waseem Daker sued State Farm Fire and Casualty Company for insurance coverage, despite knowing that his policy with State Farm required that he file suit within a year of loss. The district court granted State Farm's motion to dismiss. It ruled that the policy's provision was enforceable, and Daker's suit was time-barred.
FACTS
Daker, who had been in prison in Georgia for over a decade, maintained ownership of a home in Georgia.
Daker filed two insurance claims with State Farm for the damage to his property and State Farm denied both claims. In the denial letter, which Daker received in March 2018, State Farm alerted Daker to the provision of his insurance policy that required him to sue within one year of the dates of damage.
About two years later Daker sued in a federal court. After permitting Daker to amend his complaint three times, the district court granted State Farm's motion to dismiss it, with prejudice.
ANALYSIS
The one-year limitations provision in State Farm's policy is valid.
Daker asserted that he needed the policy to help him prepare his complaint, but his own actions refuted that assertion: He successfully prepared and filed his complaint without the promised copy of the policy, and no one has suggested that his complaint inadequately alleges breach of contract.
ZALMA OPINION
State Farm took no chances with the litigious felon, Daker, by not only denying his claims in writing and warning him - as state Regulations require - that the policy contained a one-year private limitations of action provision. His arguments failed because without the policy or the law library he filed an effective law-suit, but filed it too late. Because the District Court gave Daker three attempts to plead a viable cause of action State Farm was required to pay a great deal of money to counsel to defend the allegations and waste the time of the court, perhaps because, Daker was bored after serving ten years in prison.
(c) 2023 Barry Zalma & ClaimSchool, Inc.
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KEY POINTS
1. Motion for Judgment on the Pleadings: The Plaintiff moved for judgment on the pleadings, which was granted in part and denied in part.
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Plaintiffs Government Employees Insurance Company and other GEICO companies (“GEICO”) sued Defendants Dominic Emeka Onyema, M.D. (“Onyema”), et al (collectively, “Defendants”) alleging breach of a settlement agreement entered into by the parties to resolve a previous, fraud-related lawsuit (the “Settlement Agreement”). GEICO moved the court for default judgment against ...
ZIFL – Volume 29, Issue 14
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You can read the full 20 page issue of the July 15, 2025 issue at https://lnkd.in/giaSdH29
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
This issue contains the following articles about insurance fraud:
The Historical Basis of Punitive Damages
It is axiomatic that when a claim is denied for fraud that the fraudster will sue for breach of contract and the tort of bad faith and seek punitive damages.
The award of punitive-type damages was common in early legal systems and was mentioned in religious law as early as the Book of Exodus. Punitive-type damages were provided for in Babylonian law nearly 4000 years ago in the Code of Hammurabi.
You can read this article and the full 20 page issue of the July 15, 2025 issue at https://zalma.com/blog/wp-content/uploads/2025/07/ZIFL-07-15-2025.pdf
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3. award of punitive damages.
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See the full video at https://lnkd.in/gK_P4-BK and at https://lnkd.in/g2Q7BHBu, and at https://zalma.com/blog and at https://lnkd.in/gjyMWHff.
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