In an intriguing twist of jurisprudence, a sanction was recently awarded in Alliance Chiropractic Group, Inc. a/s/o Polande Rither v. United Automobile Ins. Co., due to the court’s determination that the insurer was aware, or should have been aware, that its improper venue defense was not supported by the application of the current law to the material facts of the case. This was articulated by the Court of Appeal. You can find more atrticles on this matter here.
This case unfolded in the County Court, 9th Judicial Circuit in and for Orange County, under Case No. 2019-SC-017663-O and was noted in a ruling on December 20, 2022. It has its roots in the defendant’s failure to pay the plaintiff’s claim for Personal Injury Protection (PIP) benefits. These benefits were sought for treatment rendered to Mr. Rither, who is being represented by Alliance Chiropractic Group, Inc..
The original suit began as a two-count complaint. Count I put forth a claim for declaratory relief and Count II alleged a breach of contract. The defendant responded with a faulty defense to the improper venue, to which the court reacted emphatically.
It is a critical reminder for all legal professionals, specifically those involved in insurance matters, to ensure their defenses hold up under scrutiny of both facts at hand and the pertinent law. The financial and reputational risks involved in such negligence are significant and could lead to dire consequences.