Nationwide is being sued for allegedly withholding insurance payouts to victims of the Eaton Fire in southern California.
The lawsuit, filed this month in the Superior Court of California in Los Angeles, alleges that Columbus-based Nationwide Mutual Insurance Company refused to pay certain benefits to a family whose home was contaminated by toxins from the January fire, forcing them to find temporary housing and shoulder the costs themselves, according to a copy of the court complaint obtained by The Dispatch.
Singleton Schreiber LLP, a law firm specializing in fire litigation, filed the lawsuit on behalf of husband and wife Tony and Mayra Greer, also parents to two young children.
The Eaton fire ignited Jan. 7 in Los Angeles and destroyed more than 9,000 homes and buildings across the weeks it burned. The complaint says though the Greer’s home was spared from total destruction, the fire covered the property in toxic contaminants that made it unlivable.
The One Nationwide skyscraper dominates the northern edge of downtown. It is the home of the Nationwide Insurance companies. (Columbus Dispatch photo by Doral Chenoweth III) Downtown Columbus Ohio office building Nationwide Insurance logo sign Taken Jan. 25, 2018 .
The lawsuit alleges that Nationwide withheld covered insurance benefits for damages caused by ash, char, heavy metals like lead dust and other fire toxins, despite a certified industrial hygienist advising that the entire property was contaminated, according to the complaint.
Nationwide Insurance did not respond to The Dispatch’s request for comment.
The complaint says all four family members experienced “serious respiratory issues” that prompted them to receive emergency medical treatment, plus written medical instructions to leave the home. According to the complaint, Nationwide was provided with these medical records.
At the end of January, the Greer family filed a claim with Nationwide seeking compensation for fire damage to their home, relocation costs and personal property damage. The complaint says the family had not received payments from Nationwide by the end of February, forcing them to move into a rental property while continuing to pay their mortgage.
Around March 20, the complaint says Nationwide had the Greer’s home reinspected by its own designated subcontractor, EFI Global, whose report confirmed initial findings of harmful, fire-deposited materials throughout the home and in the HVAC system.
Over the next several months, the Greer family “underwent a battle royale” with Nationwide while trying to receive payouts, while the company “bent over backwards” to avoid paying, the complaint alleges.
On March 25, Nationwide sent a letter to the Greer family, offering to pay them roughly $4,600 for remediating their home, after collecting the family’s $1,500 deductible. According to the complaint, this payment “fell woefully short” of what was needed for repairs.
At the beginning of April, Nationwide determined from EFI Global’s report that the Greer’s home was safe to live in, the complaint says. Around mid-June, Nationwide had EFI Global reinspect the house’s two attics, resulting in a July report from the subcontractor that said there was still ash, lead dust and other contaminants present.
EFI Global also reported that the levels of lead dust in the home suggested the family’s personal belongings were contaminated, and the subcontractor advised professional remediation, the complaint says.
Eventually — after the Greers submitted extensive documentation of their personal property losses and temprary housing, facilitated multiple inspections by EFI Global and went through hours of “ranging, overbroad, often argumentative” examinations by Nationwide — the company agreed to pay an extra $27,540 for remediation and additional living expenses, according to the complaint.
The complaint claims that despite offering additional funds, Nationwide denied that its subcontractor’s findings of toxins in the Greer’s home were related to the recent fire.
The payment was issued at the end of July, though the complaint says the amount was still insufficient to fully cover remediation or temporary housing, and Nationwide continues to deny any payments for costs of damaged personal property.
According to the complaint, Nationwide “invented excuses” for withholding payments to the Greers, treating them like “adversaries” instead of policyholders and putting additional hurdles in their path.
The lawsuit ultimately seeks compensation for economic damages, punitive damages for alleged insurance bad faith and emotional distress.
Reporter Emma Wozniak can be reached at ewozniak@dispatch.com or @emma_wozniak_ on X, formerly known as Twitter.
This article originally appeared on The Columbus Dispatch: Nationwide sued over withheld Eaton wildfire insurance payouts
