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May 06, 2026
Proper Inconsistent Pleading Defeats Policy Anti-Assignment Condition

Amended Complaint Provides Escape from Anti-Assignment Condition
Post number 5345

Read the full article at https://www.linkedin.com/pulse/proper-inconsistent-pleading-defeats-policy-condition-barry-mrugc, shttps://www.linkedin.com/pulse/proper-inconsistent-pleading-defeats-policy-condition-barry-mrugc and at https://zalma.com/blog plus more than 5300 posts.

State Farm’s Responsive Pleading Defeated Motion on Anti Assignment Condition

In Tyra Caire Treadway v. State Farm Fire And Casualty Company, Civil Action No. 23-6834, United States District Court, E.D. Louisiana (April 28, 2026) Plaintiff Tyra Caire Treadway owned property at 7000-02 Jeannette Street, New Orleans, Louisiana, which was insured under a State Farm homeowners’ policy.

Hurricane Ida struck Louisiana on August 29, 2021, causing damage to the property. Nearly two years later, on August 9, 2023, Treadway sold the property to M1SRJT Jeanette, LLC and assigned her State Farm insurance claim, including the right to pursue additional damages and penalties for alleged bad faith conduct by State Farm.

Subsequently, Treadway filed an Amended Complaint adding M1SRJT as co-plaintiff, asserting M1SRJT’s status as assignee of the insurance claim.

THE POLICY

The State Farm Policy’s Assignment of Claim condition Provided:

“Assignment to another party of any of your rights or duties under this policy regarding any claim, or any part of any claim, whether the assignment is made prior to or after the loss, will be void. We will not recognize any assignment, unless we give our written consent. However, once you have complied with all policy provisions, you may assign to another party, in writing, payment of claim proceeds otherwise payable to you.“

LAW

State Farm’s policy contains an anti-assignment clause, stating that the assignment of claims or rights under the policy is void unless State Farm provides written consent, except for the payment of claim proceeds after compliance with all policy provisions.

State Farm, in its Answer, denied M1SRJT’s status as assignee and raised defenses including lack of standing for Treadway (as she had assigned her rights before filing suit) and prescription (statute of limitations) barring Plaintiffs’ claims.

DISCUSSION AND ANALYSIS

State Farm moved for judgment on the pleadings under Rule 12(c), arguing that Plaintiffs lacked standing and that the assignment was void due to the policy’s anti-assignment clause. Plaintiffs opposed the motion, contending that the assignment was valid and that M1SRJT, as assignee, could pursue the claim for damages.

CONCLUSION

The Court denied State Farm’s motion for judgment on the pleadings, allowing Plaintiffs’ claims to proceed. The denial indicates that the Court found sufficient grounds for Plaintiffs to pursue their claims, either as assignor (Treadway) or assignee (M1SRJT), despite State Farm’s defenses based on the anti-assignment clause and standing.

A motion brought pursuant to Rule 12(c) is designed to dispose of cases where the material facts are not in dispute and a judgment on the merits can be rendered by looking to the substance of the pleadings and any judicially noticed facts.

The “material fact” at issue here is whether Treadway assigned the insurance claim to M1SRJT before filing the lawsuit. Contrary to State Farm’s assertion, that fact is very much “in dispute.” For one, State Farm denied the allegation in its Answer. What’s more, State Farm’s Answer excerpted from the insurance policy at issue, which expressly states that State Farm will “not recognize any assignment, unless we give our written consent.”

The pleadings here-which include State Farm’s Answer-squarely present the issue of assignment as a disputed question.

Any inconsistencies found in the factual and legal theories presented in the parties’ pleadings are permissible under Fed.R.Civ.P. 8(d), which allows a party to “state as many separate claims or defenses as it has, regardless of consistency.” Indeed, under that rule, a party “may set out 2 or more statements of a claim or defense alternatively or hypothetically, either in a single count or defense or in separate ones.

Fortunately for both parties, the Federal Rules of Civil Procedure permit the pleading of such apparent inconsistencies any inconsistency failing to admit the Agreement is a valid enforceable contract while also asserting claims based on breach of the Agreement is not a valid reason for dismissal. Accordingly, the Court denies Defendant’s motion for judgment on the pleadings.

ZALMA OPINION

Inconsistent pleadings worked against a series of answers to the inconsistent pleading with State Farm denying the assignment and then seeking to dismiss because of its anti-assignment clause. Of course, State Farm can change its pleading and admit the truth of the alleged assignment and them move for summary judgment.

(c) 2026 Barry Zalma & ClaimSchool, Inc.

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00:07:48
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September 18, 2026
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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.

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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...

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September 17, 2026
Convicted on 29 Tax-Refund-Fraud Counts

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 ...

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September 14, 2026
Court Enforces Fifth Amendment & Refuses to Compel Answers

Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution

Post 5489

Posted on September 14, 2026 by Barry Zalma

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 ...

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Zalma’s Insurance Fraud Letter – October 15, 2026

ZIFL – Volume 30, Issue 20 Subscribe to ZIFL here https://lnkd.in/gfpn78FM

Posted on October 15, 2026 by Barry Zalma

THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL

Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud.

ZIFL is published 24 times a year is written by Barry Zalma.

It is provided FREE to anyone who visits the site at https://lnkd.in/gVT5G9s

Six Insane Fraud Schemes the Trump Administration Has Uncovered Stealing from the taxpayer has now become a multi-billion-dollar industry in America. Obamacare has been a magnet for scammers.

Florida Insurance Agent Pleads Guilty in $300,000 Premium Finance Scheme

Daniel Raney, 41, who managed Raney Insurance and Raney Ventures in Pensacola, was arrested after AFCO Direct.

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October 14, 2026
District Court has Wide Discretion in Sentencing

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Post 4863

Posted on October 14, 2026 by Barry Zalma

In United States Of America v. Anthony Curtis Brewer, No. 26-10745, United States Court of Appeals, Eleventh Circuit (October 8, 2026) Anthony Curtis Brewer became the fiduciary for an incapacitated recipient of Department of Veterans Affairs survivor benefits and agreed to use her funds solely for her care and support without commingling them with his own.

The VA determined that he misused $67,232.33 and removed him as fiduciary in 2022. Brewer pleaded guilty to theft of more than $1,000 in government property under 18 U.S.C. § 641. At sentencing, the district court attributed $53,567 in loss to him, producing an advisory Guidelines range of 15 to 21 months.

Citing the victim’s vulnerability, Brewer’s attempts to avoid responsibility, and his other fraudulent conduct — including state convictions for arson and insurance fraud — the court ...

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October 13, 2026

Title Insurance Only Insures Real Property

Posted on October 13, 2026 by Barry Zalma

When a Seller Advised it Could Not Obtain Title to the Home Fraud Can’t be Proved

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Post 4862

In Dale Johnson and Rose Johnson, Husband and Wife v. Stewart Title Guaranty Co., and Lennar Mortgage, LLC; Low Va Rates, LLC; Sandpoint Title Insurance, Inc.; Village Capital & Investment, LLC; and David Cassel, Engineer Agent; and Unknown Does 1-50, inclusively, No. 53126, Court of Appeals of Idaho (October 9, 2026)  Dale and Rose Johnson purchased Idaho real property in 2012 with a manufactured home on it. Their purchase addendum acknowledged that the seller could not obtain title to the home, that evidence of title and an ALTA-7 endorsement might not be available, and that they accepted the home “as is.”

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