No specific laws identified for this ruling.
The Business Court affirmed that insurers can depreciate labor costs when calculating actual cash value in insurance coverage disputes.
Appeal from an order and opinion of the Business Court concluding that insurers can depreciate labor costs when calculating actual cash value.
Accardi v. Hartford Underwriters Insurance Company
This case involved a dispute over how insurance companies calculate the "actual cash value" when paying claims. The main question was whether Hartford Underwriters could reduce (depreciate) labor costs when determining how much money to pay for covered losses.
The plaintiff, Accardi, argued that insurance companies shouldn't be allowed to subtract depreciation from labor costs when calculating claim payments. Hartford Underwriters disagreed, saying they had the right to depreciate both materials and labor when determining actual cash value.
The North Carolina Business Court ruled in favor of Hartford Underwriters. The court decided that insurance companies can legally depreciate labor costs when calculating actual cash value for insurance claims, not just material costs.
What this means for workers: This ruling could affect workers whose personal property or business equipment is covered by insurance policies that use "actual cash value" calculations. When filing insurance claims, workers may receive lower payouts because insurers can now reduce both material and labor costs for depreciation. Workers should carefully review their insurance policies and consider "replacement cost" coverage instead of "actual cash value" coverage when possible, as replacement cost policies typically provide more comprehensive protection.
This summary was generated to explain the ruling in plain English and is not legal advice.
Other orders and opinions in Accardi from the same court.
Whether a unilateral amendment made pursuant to a change-of-terms provision violates the implied covenant of good faith and fair dealing and renders a contract illusory.
Whether the Industrial Commission's calculation of the plaintiff's average weekly wages pursuant to N.C.G.S. 97-2(5) and its determination concerning whether that calculation produces results that are fair and just to both parties involve an issue of law or an issue of fact.
Whether State employees are entitled to sovereign immunity against claims of negligence, gross negligence, and wrongful death brought against them in their individual capacities, and whether complaint stated cause of action.
Whether an individual may bring a claim under the North Carolina Constitution for a school board's deliberate indifference to continual student harassment.
Whether an individual may bring a claim under the North Carolina Constitution for a school board's deliberate indifference to continual student harassment.
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This ruling information is sourced from public court records via CourtListener.com. Case outcomes, claim types, and summaries are extracted using AI analysis and may be incomplete or inaccurate. It is provided for informational and educational purposes only and does not constitute legal advice.
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