Woman cannot collect damages from insurer where it did not explain one-year delay in fire loss adjustment
Sherrill Travier's home in Lincoln Park burned. Police identified it as a possible arson but the investigation was inconclusive and no evidence tied Travier to an arson claim. Nevertheless, the Auto Club, her homeowner's insurer simply ignored her indemnity claim. It simply did not respond to her Proof of Loss or her attorney's letters. When she filed suit prior to the one-year limitation period, the Auto Club "neither admitted nor denied" her claim, alleging lack of information. Ultimately, the insurer issued full payment for the claim approximately one year after the fire.
Travier had joined in her lawsuit a count for damages based on the Auto Club's unreasonable delay in responding to her contractual rights. The three reviewing Court of Appeals judges ultimately upheld the dismissal of this claim, while expressing that they "sympathize[d] with Travier's frustration." The Court noted that the so-called "Engler Majority" of Republican Supreme Court Justices has unequivocally rejected any Michigan law basis for holding insurers accountable for "bad faith" in managing claims.