In a recent decision, San Juan Superior Court Judge, Iris L. Cancio Gonzalez, of the Puerto Rico Superior Court, ruled that the insurance provider Cooperativa de Seguros Múltiples (CSM) has the burden of establishing the legality of any depreciation discount that it applies to claims for partial loss, the reasonableness of the method it used to calculate the depreciation, and the factual basis for applying the discount. This is a very significant ruling, because it enables the lawsuit to proceed to the question of whether it can be expanded into a class action lawsuit, under Rule of Civil Procedure 20.1.
Judge Cancio Gonzalez issued her ruling following plaintiff’s filing of a lawsuit against CSM, Lynette Rodríguez Flores v. Cooperativa de Seguros Múltiples. The plaintiff’s vehicle was damaged in an accident in October 2020, which was supposed to be covered under her CSM insurance policy. CSM estimated the repair costs, but rather than paying the repair costs (less the deductible), it applied an additional deduction in the amount of $681.61, based on alleged depreciation of the parts being replaced.
In issuing its ruling, the Court struck down CSM’s arguments that the Puerto Rico Insurance Commissioner’s Office had authorized such depreciation deductions. In addition, the Court struck down CSM’s claims that the insured, in accepting the reduced payment, had released the defendant from any further payment. A status conference on the case is scheduled for September 4, 2024.
Attorney Ari Kresch, with the firm 1-800-LAW-FIRM, pointed out that numerous insurance providers in Puerto Rico engage in similar unlawful and deceptive trade practices with respect to their automotive policyholders. His firm, together with Colón Ramírez LLC and DiCello Levitt LLP, intends to litigate cases against CSM and every other insurance company engaging in this allegedly fraudulent scheme.
“This kind of outrageous conduct must be eliminated from any insurance claims process in Puerto Rico,” Ari Kresch said. “Claims in the mainland United States are not subject to reduced depreciation unless the loss is declared a total loss. While insurance regulations in Puerto Rico are similar and only permit a depreciation deduction when the vehicle is totaled, most carriers do not abide by those guidelines,” Mr. Kresch added.
For more information on the lawsuits click here or contact Lianjessi Socarras at 1-800-LAW-FIRM via email at lsocarras@1800lawfirm.com or via mobile at: 939-327-1471.