Ninth Circuit Finds Covid Generated Rule Tolling Statutes of Limitations Does not Apply to Private Limitations of Action
Post 4926
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William Scollard sued State Farm after it denied his insurance claim alleging that two antique items, worth $126,000, were stolen from his vehicle. The district court granted summary judgment to State Farm, finding that Scollard’s suit was time-barred under the homeowners policy’s one-year limitation period. Scollard appealed.
Private Limitation of Action not a Statute of Limitation
In William Scollard v. State Farm General Insurance Company, No. 23-55747, United States Court of Appeals, Ninth Circuit (November 1, 2024) Scollard argued that Emergency Rule 9, enacted by the California Judicial Council in response to COVID-19, tolls the policy’s limitations provision. The Ninth Circuit noted that Rule 9 only tolls “statutes of limitations and repose[.]” Scollard argued unsucessfully that, because the limitation provision in the policy is mandated by California Insurance Code section 2071, it should be considered a statute of limitation and thus be tolled under Rule 9.
California law also at times distinguishes statutes of limitation, enacted by the legislature, from contractual limitation periods, which are bargained-for terms between the parties. Limitations periods in insurance policies are not “statutes” of limitation; they are contractual limitations on the insurer’s liability.
In certain circumstances and for some purposes, policy terms mandated by Insurance Code section 2071 are properly treated as a statute of limitation. Insurance Code section 2071’s mandated provisions provide the same result and are treated identically to statutes of limitation.
Conclusion
Because Rule 9 arises from the much broader context of COVID-19 and applies widely to all statutes of limitation, excluding contractual limitation periods contained in homeowners policies from the Rule’s scope does not defeat the entire purpose of the Rule.
Neither does the language of Rule 9 support reading it as applying to contractual limitation periods such as this one. The drafters of Rule 9 did not include “or contract” in Rule 9.
Absent any specific indication otherwise, there is no basis in California law to infer that the Judicial Council intended Rule 9 to toll contractual limitation periods.
The Ninth Circuit concluded that Rule 9 does not apply to Scollard’s claims because Rule 9 tolls only statutes of limitation, not limitation provisions contained in contracts like Scollard’s Policy.
ZALMA OPINION
For a reason unknown to me people and their lawyers tend to forget that an insurance policy is a contract. Every standard fire policy and every homeowners policy contain a private limitations of action provision – usually one or two years after the loss causing event, unless waived or extended. In this case Scollard filed his suit against State Farm after expiration of the private limitation of action. Although California’s Judicial Council enacted Rule 9 to extend statutes of limitations because of the lockdowns resulting from the Pandemic it did not even mention private limitations of action provision and Scollard’s suit was time barred.
(c) 2024 Barry Zalma & ClaimSchool, Inc.
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Detail Charging Defendant for Fraud is Sufficient
Post 5242
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Charges that Advises the Defendant of the Crime Cannot be Set Aside
In United States Of America v. Lourdes Navarro, AKA Lulu, No. 25-661, United States Court of Appeals, Ninth Circuit (December 4, 2025) Lourdes Navarro appealed the district court’s denial of her motion to dismiss the indictment and enter final judgment was in error.
FACTUAL BACKGROUND
The indictment alleged that insurers reimburse only for medically necessary services. Navarro performed unnecessary respiratory pathogen panel (RPP) tests on nasal swabs collected from asymptomatic individuals for COVID-19 screening.
Navarro billed over $455 million to insurers for those additional RPP tests that she knew to be medically unnecessary. These allegations constituted a plain, concise, and definite written ...
Louisiana Statute Prevents Enforcement of Contract Term Requiring Arbitration of Disputes
Post 5241
Read the full article at https://www.linkedin.com/pulse/international-convention-requiring-enforcement-award-barry-sttdc, see the video at and at and at https://zalma.com/blog plus more than 5200 posts.
In Town of Vinton v. Indian Harbor Insurance Company, Nos. 24-30035, 24-30748, 24-30749, 24-30750, 24-30751, 24-30756, 24-30757, United States Court of Appeals, Fifth Circuit (December 8, 2025) municipal entities including the Town of Vinton, et al sued domestic insurers after dismissing foreign insurers with prejudice. The insurers sought arbitration under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “Convention”) but the court held Louisiana law — prohibiting arbitration clauses in such policies—controls, as the Convention does not apply absent foreign parties who ...
Refusal to Provide Workers’ Compensation is Expensive
Post 5240
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In Illinois Department of Insurance, Insurance Compliance Department v.USA Water And Fire Restoration, Inc., And Nicholas Pacella, Individually And As Officer, Nos. 23WC021808, 18INC00228, No. 25IWCC0467, the Illinois Department of Insurance (Petitioner) initiated an investigation after the Injured Workers’ Benefit Fund (IWBF) was added to a pending workers’ compensation claim. The claim alleged a work-related injury during employment with the Respondents who failed to maintain workers’ compensation Insurance.
Company Overview:
USA Water & Fire Restoration, Inc. was incorporated on January 17, 2014, and dissolved on June 14, 2019, for failure to file annual reports and pay franchise taxes. It then operated under assumed names including USA Board Up & Glass Co. and USA Plumbing and Sewer. The business ...
Zalma’s Insurance Fraud Letter
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ZIFL Volume 29, Issue 24
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Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/
Zalma’s Insurance Fraud Letter
Merry Christmas & Happy Hannukah
Read the following Articles from the December 15, 2025 issue:
Read the full 19 page issue of ZIFL at ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
