MacArthur’s York: Far More Than Three Isolated Incidents

Wednesday, May 21st, 2014 @ 5:29PM in News, Press Releases

For Immediate Release – May 21, 2014
Contact: Tim Kelly  *    *  

LAVALLETTE, NJ - In a very clear contrast this morning on Dom Giordano’s radio program, former mayor Steve Lonegan proved to voters that he’s the only conservative in this race.

As predicted, liberal Tom MacArthur repeatedly distorted his own record, misrepresented Steve Lonegan’s record, and provided very little substance to which conservatives can identify.

Most disappointing is MacArthur’s continual denial of any wrongdoing in relation to the hundreds of families across the country left victimized by his York claims adjustment company.

“We  handled over a million claims when I was running York and the best Steve can do is come out with three that he says prove some terrible thing. There are some lawsuits in insurance. But three out of over a million?” (Dom Giordano Debate, 5/21/2014)

Let’s pump the brakes, Tom. You’re entitled to your own opinion, but not your own facts.  

Tom MacArthur’s company has been hit with far more lawsuits over delayed claims or unfair payouts on claims than just the three egregious acts documented time after time.

Lawsuit upon lawsuit arose on Tom MacArthur’s watch. Some were settled after he claims to have left the company, but each and every incident listed below was set in to motion while he was at the helm of York.

A Few of the Many Abuses Suffered at the Hands of Tom MacArthur’s Insurance Company

York Was Cited for Over 100 Violations for Mishandling Claims in the 2008 Sayre Fire in Sylmar, California

Victim Gary Rivera was given a lowball value by York, then illegally stalled through reassignment to multiple adjusters; hundreds of others had the same problems. (SC Public Radio, 12/23/2009)

The State of California took enforcement action but York paid only a $285,000 settlement. (Law360.com, 9/26/2012)

Watch this ad featuring Sylmar fire victims Jodene and Doug Finch.

York Refused to Pay Claims Following 2008 Hurricane Ike

York Did Not Handle Houston Baptist University’s Claims in good faith. (The Collegian, 9/8/2010)    Only after being sued, York paid a large settlement and required a confidentiality agreement. (The Collegian, 2/24/2011)

Tom MacArthur’s company has been sued repeatedly for slow walking claims of victims of Hurricane Katrina in Louisiana, Hurricane Ike in Texas, and Hurricane Ivan in Florida.

The following chronological list of suits contain but a few of the most egregious summaries of the lawsuits filed against MacArthur and York:

- On November 18, 2002, York and their client Providence Co. were successfully sued in federal court for failing to pay out an insurance policy in a timely manner. The Court concluded that Providence and York “adopts an excessively narrow interpretation” of their insurance policy so as not to have to pay out. (CAT Internet, et al v. Providence Co., et al).

- On June 20, 2003, York Insurance Company successfully exploited a technicality to avoid paying out a bodily injury claim filed against by Houston Well Center, Inc. (York Insurance Company v. Houston Wellness Center, Inc.)

- On February 7, 2005, The Bearington Collection sued York and its client, Providence Washington Insurance Company for breach of contract and failure to pay out. York and its client, Providence Washington Insurance Company, quickly settled.

- In 2005, York sued for slow walking payments to Hurricane Ivan victims in Florida, something that they were later accused with Hurricane Ike victims in Texas. Their client, Citizens Property Insurance Corporation, faced a “bad faith” lawsuit due to the way it handled hurricane payment claims in 2004.

- In 2005, York Claims Services and their client, Lloyd’s of London, was sued by Ken Shaw, president of the Red River Warehouse in Monroe, Louisiana. Red River Warehouse had flooded and a representative of York Claims Service repeatedly low-balled on the costs of the damage. York settled with Red River in 2007.

- In 2006, Timothy Nicholes was badly injured when he was hit by an under insured motorist. He sued York Claim Services and their client, New Hampshire Insurance Company, an AIG subsidiary, after they ignored his injury claim for months. York and New Hampshire settled out of court just three months later.

- In 2007, Jeffrey Trauth, a property and business owner in New Orleans, Louisiana, had his principal place of business and rental properties flooded by Hurricane Katrina in 2005 and filed suit against York for repeatedly slow walking his hurricane damage claims. The money to pay for the damage done came out of Trauth’s pockets. York Claims Service and its client, Louisiana Citizens Property Insurance Corporation “deliberately and in bad faith underadjusted [Trauth's] claims, and paid them less than [Trauth] was owed under their policy, employing many illegal and captious tactics along the way,” according to a complaint filed against York. York settled out of court after two years of litigation.

- In 2008, York Insurance Services Group was sued by The Sportman’s Company of Hattiesburg, Inc for slow-walking on property damage claims. In 2011, Jerry and Kris Chernik sued York Risk Services Group and their client Lexington Insurance Company for breach of contract. Again, in 2011, Stephen McGue sued York Risk Services Group and their client New Hampshire Insurance Company for slow walking claims.

- In September 2009, Dollar Rent-A-Car settled in a lawsuit with York Claims Services for slow-walking payment for a customer who had gotten into an accident in Las Vegas. (Travelers Indemnity Company of America v. Dollar Rent-A-Car)

- In December 2009, Houston Baptist University sued York, and their client ACE American Insurance Company, an AIG subsidiary, for slow walking and delaying payment of hurricane damage sustained to one of their buildings. York was forced to settle, according to the Daily Mail.

- In October 2010, Kynto Ventures, LLC, sued Chubb Custom Insurance and York Risk Service Group. Again, York was accused of slow-walking claims. http://dockets.justia.com/docket/texas/txsdce/4:2010cv03803/813237

- In 2013, York Risk Services was again successfully sued by Kent State University Board of Trustees for slow walking payment for $2.1 million in damages from an early 2009 construction project when MacArthur was CEO. https://www.courtlistener.com/ca6/5btE/kent-state-university-board-of-trustees-v-lexingto/

According to PACER, Several Additional Lawsuits Have Been Filed Against MacArthur’s York Company:

Robin Zahran and Karen Zahran vs. York Insurance Company

CAT Internet Services, INC; Internet Supply, INC. vs. York Insurance Company

Robin Zahran, Karen Zahran vs. York Insurance Company

Houston Wellness Center, INC. vs. York Insurance Company

Bearington Collection, INC. vs. York Insurance Company

Elmer Amendt vs. York Insurance Company

Desimone Aviles vs. York Claims Service

Houston Baptist University vs. York Claims Service

William Johnson vs. York Claims Service 

Red River Warehouse vs. York Claim Service

Timothy Nicholes vs. York Claims Services

Jeffrey Trauth, Trauth Design Management LLC. vs. York Claims Service

Jeffrey Trauth, Trauth Design Management LLC. vs. York Claims Service

Jerald M. Alexander vs. York Claims Service

Martin Sokoloff vs. York Claims Service

Lynn K. Bailey vs. York Claims Service

Guadalupe Magally Escobar vs. York Claims Service

Calofe Enterprises, LLC vs. York Claims Service

Leisure Life Senior Apartment Housing vs. York Claims Services

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