Lawyers and Insurance Companies

July 13, 2010 at 21:39:21
Specs: XP Pro/W2k/98Se/Puppy 5.0, XP2800+/768 MB
This is copied from a Yahoo Group...seems there is some justice in this world.


A lawyer purchased a box of very rare and expensive cigars, then insured them against, among other things, fire. Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy the lawyer filed a claim against the insurance company. In his claim, the lawyer stated the cigars were lost "in a series of small fires." The insurance company refused to pay, citing the obvious reason, that the man had consumed the cigars in the normal fashion. The lawyer sued....and WON! ?

(Stay with me now.)

Delivering the ruling, the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer held a policy from the company, which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be "unacceptable fire" and was obligated to pay the claim.

Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000 to the lawyer for his loss of the cigars lost in the "fires".


After the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON!!! With his own insurance claim and testimony from the previous case being used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000 fine.

This is a true story and was the First Place winner in the Criminal Lawyers Award Contest.


Audares Juvo

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July 14, 2010 at 02:03:55
Sorry to disappoint you but this one's been around for a number of years now - it's an urban myth, thoughwould be nice if it was true.. Check out HERE for example - a Google will turn up others no doubt.

"I've always been mad, I know I've been mad, like the most of us..."

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July 14, 2010 at 03:08:36
Good catch. I wondered who would ID it as an urban myth money was on DerbyDad.

Three years ago I thought it strange that the charge was 24 counts of arson; thought cigars usualy came in boxes of 50. Anyway, found it on snopes under clever crimes (or something like that).

Audares Juvo

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July 14, 2010 at 07:41:01
As a cigar smoker, I'd heard that one in a couple different variations in the past.

Skip, cigars can come in boxes of 20, 25, 26, 50 and bundles of 100. Those are the amounts I know of personally. I suspect there may be some manufacturer's who use other counts in their boxes.

I thought it might have something to do with the gauge of the cigar but then I realized there's no "standard" side for cigar boxes so it's whatever the mfg feels like. you've got me thinking about a nice tasty cigar. If it doesn't rain today, I do believe I'll sit out on my deck after supper tonight with a glass of homemade sun tea (iced of course) and either a Bolivar Royal Corona (Cuban) or maybe a Rocky Patel Nording (Honduran)

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***

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July 14, 2010 at 12:51:00

That's cause we are.

PowerMac 9600(1 ghz G4)
512mb RAM
50gb SCSI
ATi 9200 PCI

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July 14, 2010 at 17:56:42
I know nothing of this but found the story entertaining regaurdless. Sad thing is I seem to be seeing people attempt to be this briliant all the time these days. From all walks of life. Not sure how true this is but I have heard that there is an accountant in michigan that is filing a claim against bp stating that the spill has ruined his business. I know I am not nearly as bright as a 12watt bulb but how is a business over a thousand miles away being affected?

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July 15, 2010 at 11:52:08

I apologize for disappointing you! I've been swamped at work as I prepare for a week off and hadn't seen that post yet.

Had I seen it sooner, I would have posted this:

I'll try harder to stay on top of things. <g>

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July 15, 2010 at 12:07:31
re: "I know I am not nearly as bright as a 12watt bulb but how is a business over a thousand miles away being affected?"

Have you ever heard the term, or read the book, "The World Is Flat"?

I have clients all over the country, but I never leave my office to meet with them. We have phones and computers and fax machines to pass information around and to help us "get together" for meetings.

If a large segment of my client base was located in a region that was impacted by the oil spill such that I could no longer earn any revenue from those businesses, I can see a reason to file a claim against the offender.

Perhaps this accountant specializes in servicing the fishing or tourism industry and the spill has cut his revenues substantionally.

Perhaps this accountant serviced or worked for a company that bought fish or other products from the gulf region and was let go because the company could no longer sustain that business.

Trust me, the impact of this spill will not be limited to the businesses (and landscape) that actually have crude washing up nearby. The economic impact will be global in nature.

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July 15, 2010 at 14:39:38
"I've been swamped at work as I prepare for a week off..."

I understand; preparing for time off can be time consuming.

Audares Juvo

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July 15, 2010 at 17:09:34
re: preparing for time off can be time consuming

...and it'll be even worse when I get back.

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July 16, 2010 at 04:30:10
Actually I have never heard of the book but I understand what you are saying. Trouble is most in this area are handled by local accountants. I have to find the article. It explained what this person was claiming and it wasn't that he had clients in this area nor was it anything to do with tourism. It was some off the wall thing. Something to the affect of local businesses had decided not to invest in the gulf coast then decided they did not need his services anymore. Maybe I am wrong but the hole thing seems reaching to me. If I had investments here I am sure I would be depending on my accountant to pull my butt through this by use of tax laws and other stuff I don't at all understand.

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July 16, 2010 at 12:11:07
re: Something to the affect of local businesses had decided not to invest in the gulf coast then decided they did not need his services anymore

That's exactly the type of thing I was talking about, it just wasn't one of my examples.

Bear with me here...

I have a long time friend who is a CPA. Instead of working for some major corporation, he is kind a free-lancer who does "odd-jobs" - and does them very well.

Many times he will contract with a company who is looking acquire some other specific company or perhaps looking to find out what companies might be worth acquiring or investing in.

He will do market analysis, forensic accounting, etc. and make a recommendation regarding what he found.

OK, so let's say he signs a contract to help a venture capital group find companies in the Gulf Coast area that are worth investing in. Suddenly the market dries up or the investors get cold feet because of the spill and they terminate the contract. We won't get into whether or not he can sue the venture capital group because we don't know what the contract says, but the bottom line is that he is out of a job because of the spill.

I can't say whether or not it's a "stretch" to be suing BP because I don't know the details - and I don't live in that world.

As an aside - and as an example of what I mean by "I don't live in that world" - let me tell you about a job my buddy had last year.

He took a job as the CFO of a company that was going to file for bankruptcy - on his recommendation - the very next week.

It went like this: The company hired him as a consultant to see if the company could be saved. After doing his analysis he determined that the company had to file for bankruptcy to protect itself from its creditors. He also put together a complicated plan to get them back on their feet after they filed.

They wanted him to continue on as a consultant to implement the restructuring plan, but the laws in the state where the company was filing did not allow them to pay his consulting fee once they filed. Paying employees was a different story.

So they hired him as the CFO in order to retain his services and then promptly filed for bankruptcy. Since he was now a salaried employee, they were able to keep paying him.

It is indeed a strange world we live in.

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July 16, 2010 at 22:37:06
I understand what you are saying. My problem is probably first and foremost is lack of business world knowledge. To me it seems that if this is what happened it is just like the condo owners here. He made an "investment". Some times there is a great payoff to these investments. There is always a risk. If this is all he had going then he put his eggs all in one baskit and dropped the baskit. Why should he be able to get paid for making a bad decision? In my opinion. I'm still looking for the article. It just seems reaching to me. To me it would be like sueing chevrolet for my broken leg because the guy that ran the red light and hit me was driving a chevy.

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