Chamber News Feed: Somerset County, NJ: (BASKING RIDGE, NJ) A Basking Ridge couple, who removed pets, family heirlooms and a Harley Davidson motorcycle from their home before a fire, has lost an appeal in a 2008 fraud case in the Morris County court and must pay Allstate $807,981 under the states Insurance Fraud Protection Act. A state appellant upheld a jury verdict Tuesday, saying Marilyn D. and William J. Masaitis arent entitled to compensation from Allstate, their homeowners insurance carrier, for loss of property in a fire that destroyed their home and belongings. The homeowners had removed a dog, cat, furniture, large screen television, family photos and the Harley Davidson among other things from the house, before it caught fire, according to a summary of events in the appellant courts ruling. Allstate ruled the fire suspicious and denied the couple coverage, although they were never charged with arson or any other crime, the court wrote. The couple had claimed $934,582 worth of personal property losses in the blaze, the court wrote. The home had been on the market, with an asking price of $1.3 million, it wrote. On May 6, 2008, fire ripped through the couples home., the court wrote. The Basking Ridge fire marshal turned the investigation of the fire over to the county prosecutors office and testified at trial that the cause of the fire was undetermined. The prosecutors office never ruled the fire was arson, the court wrote. Allstate had issued a homeowners insurance policy to the couple but considered the fire suspicious and investigated the couples claims, the court wrote. On May 21, 2009, Allstate denied the claim, citing misrepresentation, fraud and concealment, the court wrote. In May, 2010, the couple filed a 10-count complaint in Superior Court against Allstate, its investigators and the financial institution that held mortgages on the property, seeking the payout on the policy, the court wrote. Allstate responded with a counterclaim, alleging fraud, according to the court. William Masaitis had testified he had not been in Basking Ridge on the afternoon of the fire but his cell phone records showed that he made two phone calls transmitted from cell towers in Basking Ridge about one hour before the fire was first reported by a neighbor who saw smoke coming from the roof and chimney of the house, the court wrote. William Masaitis had also originally claimed he had not done any electrical work on the house himself, but later admitted he had personally done electrical work, the court wrote. In sum, there was sufficient evidence from which the jury could reasonably infer that plaintiffs had motive and opportunity to set the fire for purposes of relieving their financial difficulties and benefitting from the fire, the court wrote. Allstate had paid the couple $675,000 to satisfy its mortgage on the property, pending the outcome of the couples lawsuit, as the policy required, according to the court. In December, 2012, a jury found the couple knowingly misrepresented material facts in the case, and in March, 2013, a final judgement against the couple was rendered, the court wrote. The jury didnt find enough proof to determine the couple was guilty of arson, but its judgement against the couple was based on a determination they misrepresented their losses, the court wrote. Your Bernards Township Regional Chamber of Commerce Works for You!
Posted on: Thu, 28 Aug 2014 11:05:24 +0000
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