Formulaic Recitation Of The Elements Of Civil Conspiracy Are Insufficient
Post number 5320
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In Hassan Fayad v. Liberty Mutual Insurance Company, et al., No. 2:25-cv-10930, United States District Court, E.D. Michigan, Southern Division (March 24, 2026) Plaintiff Hassan Fayad, the owner of several businesses providing transportation, diagnostics, testing, and therapy services, regularly billed insurance companies for these services, was arrested and tried for fraud, convicted, had the conviction overruled and sued the insurers and prosecutors he found responsible.
FACTUAL BACKGROUND
By January 2020, Liberty Mutual, Progressive, Allstate, and Esurance suspected fraudulent activity and filed a complaint with the Michigan Department of Attorney General (MDAG). The insurers alleged that Fayad and others billed Michigan auto insurance policies for profit without actually providing medically necessary services, or any services at all.
Fayad was subsequently charged in state court for conspiracy to commit false pretenses and insurance fraud. He sued the insurers and two prosecuting attorneys, asserting violations under 42 U.S.C § 1983 and state law, including claims for false arrest, malicious prosecution, due process violations, civil conspiracy, and gross negligence.
In April 2022, a federal grand jury indicted Fayad for aggravated identity theft and indicted Fayad for wire fraud, conspiracy to defraud the United States, and tax evasion. After a superseding indictment and a judgment of partial acquittal a jury tried and found Fayad guilty of one count of aggravated identity theft in January 2024 but in December 2024, by stipulation of the parties, the Court vacated the jury’s verdict and dismissed that count, along with “all other outstanding counts in the underlying matter” against Fayad.
Fayad sued Fairley and Glenn, as well as Insurer Defendants, claiming that they conspired together to wrongfully charge him, obtain a warrant to arrest him, and freeze and encumber his assets. Defendants Allstate, Liberty Mutual and Progressive also moved to dismiss,
LEGAL ISSUES
Fayad’s complaint alleged federal constitutional violations under 42 U.S.C § 1983 and various state law claims. Section 1983 requires that the defendants be state actors or that their conduct be fairly attributable to the state. Prosecuting attorneys are generally afforded absolute immunity from damages for actions taken within their prosecutorial role. Civil conspiracy claims require specific factual allegations demonstrating an agreement between parties to commit an unlawful act.
DISCUSSION AND ANALYSIS
The court found that the prosecuting attorneys were entitled to immunity from Fayad’s claims, as their actions fell within their official prosecutorial duties. Fayad’s pleadings regarding civil conspiracy were insufficient, lacking factual details necessary to support such a claim. Furthermore, the insurance companies (Insurer Defendants) were not state actors and thus could not be held liable under § 1983 for constitutional violations.
At bottom, Fayad’s complaint plainly reads as “a formulaic recitation of the elements of” civil conspiracy, which “will not do” for a complaint to survive a motion to dismiss under Civil Rule 12(b)(6).
With no viable federal claims remaining, only state law claims were left for adjudication.
Glenn was entitled to absolute prosecutorial immunity because there was no conduct identified as outside of Glenn’s role as an advocate — including her conduct that was allegedly purely investigative. A plaintiff cannot sustain a false arrest claim where a case that was ultimately dismissed for lack of probable cause began with an apparently valid, lawfully obtained, and properly executed warrant
CONCLUSION
In sum, Fayad’s claims against all Defendants will be dismissed under Civil Rule 12(b)(6)
Because the federal claims were dismissed and only state law claims remained, the court declined to exercise jurisdiction over the state claims. Accordingly, the defendants’ motions to dismiss were granted, and the case was dismissed in its entirety.
ZALMA OPINION
Mr. Fayad was a very lucky man with regard to the charges brought against him by the US Department of Justice, found guilty and then had the conviction dropped voluntarily. Adding insult to the failure to convict him convincingly he sued the prosecutors and the insurers who caused his arrest. The case was properly dismissed and he can try his state based claims but might lose those as well. Vengeance is not appropriate in court.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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Insurance Expert May Not Testify to Speculative and Contains Unsupported Conclusions.
Posted on September 18, 2026 by Barry Zalma
See the full video at and at https://rumble.com/v7fmifw-expert-may-only-testify-to-what-experience-supports.html
In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.
The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.
Law
The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...
150 Months in Prison for Tax Fraud
Post 4846
Posted on September 17, 2026 by Barry Zalma
See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS
In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS
Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.
The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...
Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution
Post 5489
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Fraudster Refuses to Answer Questions About His Alleged Fraud
See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr
In Great American Insurance Co. v. Gemstone Property Management, LLC, et al., No. 23-cv-9100 (LJL), United States District Court, S.D. New York (September 8, 2026) Great American Insurance Company alleged that it was defrauded through a scheme in which Subin Associates, LLP recruited individuals to stage construction-site injuries, arranged unnecessary medical treatment and litigation funding, and pursued fraudulent personal-injury claims.
Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.
After Great American ...
Is Exhaustion Required to Seek Declaratory Relief From an Excess Insurer?
Post 4578
Posted on November 9, 2026 by Barry Zalma
In Fox Paine & Company, LLC, et al. v. Twin City Fire Insurance Company et al., S287404, 593 P.3d 832, 593 P.3d 838, 346 Cal.Rptr.3d 541, Supreme Court of California, (July 27, 2026) the Supreme Court noted that Insurance is sometimes procured in a series of layers, with an insured acquiring a primary insurance policy that provides an initial layer of coverage for loss or liability and an excess insurance policy or policies that provide additional coverage in the event the underlying coverage is exhausted. Usually, the first layer of coverage must be exhausted before the excess layers are available to the insured.
Exhaustion
Fox and Paine’s investment-firm dispute generated extensive litigation and competing insurance claims. Their insurance tower consisted of a $10 million primary policy and four $10 million excess layers.
The Fox Parties alleged that insurers paid their rivals, withheld information,...
Payment of Fines & Completion of Probation Reinstates Right to Vote
Post 4576
Posted on November 5, 2026 by Barry Zalma
To Restore Voting Rights The Felon Must Pay Fines of $546.00
In Florida Supreme Court Mediator Ethics Advisory Committee, ETH F-26-377, No. F-26-377 (October 29, 2026) citizen unnamed and to Ron Desantis Governor, Cord Byrd the Secretary of State Florida Division of Elections provided an advisory opinion to a convicted felon about his right to vote:
To: [redacted] We received your request for an advisory opinion. You indicate that you have one or more felony convictions and request whether you are eligible to vote, including whether you have any outstanding legal financial obligations under section 98.0751, Florida Statutes, and, if so, a statement of the amount that must be paid to make you eligible to vote, and an explanation of how the amount was calculated.
The Division hereby responds to your request pursuant to its legal authority under section 106.23(2), Florida Statutes, and Florida ...
Administrative Review Permits the Agency to Apply its Expertise
Post 4574
In Erwin Jordan Castro Valdez v. Warden, Otay Mesa Detention Center, No. 26-cv-06147-BAS-JLB, United States District Court, S.D. California (October 30, 2026) Castro Valdez, a Cuban national paroled into the United States, was arrested on June 23, 2026, for alleged insurance fraud, grand theft, and making a false report to law enforcement. In his first habeas action, the district court ordered a bond hearing within fourteen days to determine whether the changed circumstances justified revoking his parole.
An Immigration Judge subsequently denied bond because of his pending state criminal case. Castro Valdez filed a second petition under 28 U.S.C. § 2241, challenging that determination and requesting immediate release without first appealing to the Board of Immigration Appeals (BIA).
LAW
According to the supplied text, § 2241 does not expressly require administrative exhaustion, but courts impose exhaustion as a prudential requirement. ...
