Uncovering Bad Faith: The Battle for Fair Compensation in Eagle Property Capital Investments LLC v. American Risk Insurance Co. Inc.”

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EPC accuses ARIC of inducing them to enter into a contract with the intent of denying benefits in the event of a claim, and of knowingly engaging in unreasonable conduct by not fully covering the damages and mitigation work. According to the company, ARIC went around EPC and paid vendors directly without notifying the company or its public adjuster, in an effort to negotiate discounts, putting the companies in violation of loan agreements and at risk of further violations. This unilateral action also resulted in the company not receiving a final lien release from any of its vendors, causing them to believe none of them have been fully compensated for their work.

The company also alleges that ARIC has not sent proof of payment to the company or its lenders and has not complied with the company’s demand for “critical” statements of loss, making it “impossible” to reconcile what was paid to the vendors with what it actually owes them. This has forced the company to hire a forensic accountant to reconcile the claim.