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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 116706
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I own J. Gallagher Equipment Co, INC., My situation is, my

Customer Question

My name is***** own J. Gallagher Equipment Co, INC., My situation is, my driver was in an accident a year ago with a truck and trailer over turn, no injuries, I was and still am fully insured. However, my insurance company, Canal Insurance, refuses to pay the tow company the full amount they are asking, because of this, they still have my equipment, leaving me forced to pay $3000 a month in payments for this new truck and trailer that i do not have access to. Canal states, the company has over charged, this is not my problem, the insurance company should pay, release my equipment, then go after the tow truck company… however, that has not happened. Canal has assigned a lawyer to my case, however, I have called him several times but have not spoken with him in months, he NEVER returns my call. This has been going on for a year with no end in sight. I can not keep making payments on a truck and trailer that are not producing.
I truly do believe the tow company did over charge… now they are applying storage fees. If something is not done soon, they will end up owning this equipment! Regards, ***** ***** (###) ###-####
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You need to sue the insurance company for breach of contract, since it was their duty to pay the bill or resolve the matter in a timely manner. If their attorney is not pursuing this in a timely manner as you describe, your company will need to hire your own attorney and file suit against your insurer as the issue here is between you and your insurer because they were liable to resolve the matter with your towing bill under your policy.
You could pursue the insurer for bad faith in refusing to pay the claims. Under RI Gen. Law § 9-1-33:
"Insurer's bad faith refusal to pay a claim made under any insurance policy. – (a) Notwithstanding any law to the contrary, an insured under any insurance policy as set out in the general laws or otherwise may bring an action against the insurer issuing the policy when it is alleged the insurer wrongfully and in bad faith refused to pay or settle a claim made pursuant to the provisions of the policy, or otherwise wrongfully and in bad faith refused to timely perform its obligations under the contract of insurance. In any action brought pursuant to this section, an insured may also make claim for compensatory damages, punitive damages, and reasonable attorney fees. In all cases in which there has been no trial in the superior court on or before May 20, 1981, the question of whether or not an insurer has acted in bad faith in refusing to settle a claim shall be a question to be determined by the trier of fact.
So you have grounds to pursue the insurer for ALL of your losses, plus punitive damages and attorney's fees.

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