{"id":173296,"date":"2025-04-06T08:52:07","date_gmt":"2025-04-06T08:52:07","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished\/"},"modified":"2025-04-06T08:52:07","modified_gmt":"2025-04-06T08:52:07","slug":"insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=173296","title":{"rendered":"Insurer Who Sues Insured for Fraud Without Evidence Should be Punished"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><strong>Post 5039<\/strong><\/p>\n<p>See the full video at <a href=\"https:\/\/rumble.com\/v6rlky1-insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished.html\">https:\/\/rumble.com\/v6rlky1-insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished.html<\/a> and at <a href=\"https:\/\/youtu.be\/R21dPn2pLSE\">https:\/\/youtu.be\/R21dPn2pLSE<\/a><\/p>\n<h2><strong><span style=\"color: #800000;\"><span class=\"OYPEnA font-feature-liga-off font-feature-clig-off font-feature-calt-off text-decoration-none text-strikethrough-none\">Lack of Evidence Accusing Insured of Fraud Exposes Insurer<\/span><span class=\"OYPEnA font-feature-liga-off font-feature-clig-off font-feature-calt-off text-decoration-none text-strikethrough-none\"> to Punitive Damages<\/span> <\/span><\/strong><\/h2>\n<p><img loading=\"lazy\" data-recalc-dims=\"1\" decoding=\"async\" class=\"alignnone wp-image-303563\" src=\"https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH.png?resize=640%2C360\" alt=\"\" width=\"640\" height=\"360\" srcset=\"https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH.png?resize=300%2C169 300w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH.png?resize=1024%2C577 1024w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH.png?resize=768%2C432 768w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH.png?w=1435 1435w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH.png?w=1280 1280w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\"\/>In\u00a0<em>Shalz Construction LLC, a Colorado limited liability company; and Bradley Shalz, individually v. Great Lakes Insurance, SE f\/k\/a Great Lakes Reinsurance UK PLC, a foreign corporation,<\/em> Civil Action No. 22-cv-03005-NYW-NRN, United States District Court, D. Colorado (March 31, 2025) the Court was asked by Plaintiffs Shalz Construction, LLC and Bradley Shalz\u2019s (collectively, \u201cPlaintiffs\u201d or \u201cShalz\u201d) for Leave to Amend to Seek Exemplary Damages (\u201cMotion to Amend\u201d).<\/p>\n<h3><strong><span style=\"color: #800000;\">Background<\/span><\/strong><\/h3>\n<p>The case has a complicated history, originating from third-party claims that Great Lakes asserted against Shalz in an earlier lawsuit involving Pinon Sun Condominium Association, Inc. Great Lakes alleged that Shalz conspired with Pinon Sun to commit insurance fraud by submitting inflated estimates for roofing repairs.<\/p>\n<h3><strong><span style=\"color: #800000;\">Legal Proceedings<\/span><\/strong><\/h3>\n<p>Judge Christine M. Arguello dismissed the racketeering claims against Shalz and later entered summary judgment in Shalz\u2019s favor on all remaining claims. The court concluded that Great Lakes had relied on its own contractors\u2019 estimates rather than any information provided by Shalz.<\/p>\n<h3><strong><span style=\"color: #800000;\">Current Lawsuit<\/span><\/strong><\/h3>\n<p>Shalz sued Great Lakes for malicious prosecution, claiming actual out-of-pocket damages of approximately $200,000 and seeking damages for lost profits, business opportunities, and damage to their reputation, estimated at approximately $3 million.<\/p>\n<h3><strong><span style=\"color: #800000;\">Motion to Amend<\/span><\/strong><\/h3>\n<p>Shalz asserted that Great Lakes acted with fraud, malice, or willful and wanton conduct in bringing the conspiracy and fraud claims against Shalz, justifying a jury awarding exemplary damages.<\/p>\n<h3><strong><span style=\"color: #800000;\">Legal Standard<\/span><\/strong><\/h3>\n<p>Under Colorado law, exemplary damages are appropriate in civil actions where the injury is attended by circumstances of fraud, malice, or willful and wanton conduct.<\/p>\n<h2><strong><span style=\"color: #0000ff;\">ANALYSIS<\/span><\/strong><\/h2>\n<p>Plaintiffs have provided evidence that Great Lakes pursued the lawsuit against Shalz maliciously and with evil intent, primarily to exert settlement pressure. Therefore, the Court granted Plaintiffs\u2019 Motion for Leave to Amend to Seek Exemplary Damages.<\/p>\n<p><strong><span style=\"color: #800000;\">Legal Standard For Allowing Exemplary Damages Under Colorado Law<\/span><\/strong><\/p>\n<p>A claim for exemplary damages under Colorado law is appropriate in all civil actions in which damages are assessed by a jury for a wrong done to a person or to personal or real property, where the injury complained of is attended by circumstances of fraud, malice, or willful and wanton conduct.<\/p>\n<p>Willful and wanton conduct is defined as conduct purposefully committed which the actor must have realized as dangerous, done heedlessly and recklessly, without regard to consequences, or of the rights and safety of others, particularly the plaintiff.<\/p>\n<p>The statutory requirements are met where the defendant is conscious of his conduct and the existing conditions and knew or should have known that injury would result. Exemplary damages are intended to punish and penalize a defendant for certain wrongful and aggravated conduct and to serve as a warning to other possible offenders<\/p>\n<h2><strong><span style=\"color: #0000ff;\">CONCLUSION<\/span><\/strong><\/h2>\n<p>Great Lakes brought claims against Shalz for which Great Lakes could not even muster any non-speculative allegations or utterly failed to provide any evidence of, for example, reliance or damages.Plaintiffs brought forward prima facie evidence that Great Lakes sued Shalz for fraud, civil theft with the knowledge that there was little to no support for those claims because Great Lakes had never relied on or been damaged by the alleged conduct.<\/p>\n<p>Plaintiffs\u2019 Motion for Leave to Amend to Seek Exemplary Damages was <strong>GRANTED<\/strong>.<\/p>\n<p>Insurance fraud is both a crime and a tort. If an insured commits fraud any claim owed under an insurance policy becomes void and noncollectable.\u00a0 However, accusing an insured of fraud without evidence is wrongful and can take what an insurer thought was a good defense to a claim into an obvious loss and provide the insured with the ability to punish the insurer. Great Lakes learned that its suit against Shalz for fraud and civil theft with the knowledge that there was little to no support for those claims because Great Lakes had never relied on or been damaged by the alleged conduct, the court allowed the plaintiffs to amend their suit to include a claim seeking exemplary damages.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-302787 alignleft\" src=\"https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2024\/12\/BZTHEA.png?resize=300%2C282\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" srcset=\"https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2024\/12\/BZTHEA.png?resize=300%2C282&amp;ssl=1 300w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2024\/12\/BZTHEA.png?resize=1024%2C964&amp;ssl=1 1024w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2024\/12\/BZTHEA.png?resize=768%2C723&amp;ssl=1 768w, https:\/\/i0.wp.com\/zalma.com\/blog\/wp-content\/uploads\/2024\/12\/BZTHEA.png?w=1070&amp;ssl=1 1070w\" alt=\"\" width=\"300\" height=\"282\" data-recalc-dims=\"1\"\/>(c) 2025 Barry Zalma &amp; ClaimSchool, Inc.<\/p>\n<p>Please tell your friends and colleagues about this blog and the videos and let them subscribe to the blog and the videos.<\/p>\n<p>Subscribe to my substack at <a class=\"link\" href=\"https:\/\/barryzalma.substack.com\/subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/barryzalma.substack.com\/subscribe<\/a><\/p>\n<p>Go to X @bzalma; Go to Newsbreak.com <a class=\"link\" href=\"https:\/\/www.newsbreak.com\/@c\/1653419?s=01;\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.newsbreak.com\/@c\/1653419?s=01;<\/a> Go to Barry Zalma videos at Rumble.com at <a class=\"link\" href=\"https:\/\/rumble.com\/account\/content?type=all;\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/rumble.com\/account\/content?type=all;<\/a> Go to Barry Zalma on YouTube- <a class=\"link\" href=\"https:\/\/www.youtube.com\/channel\/UCysiZklEtxZsSF9DfC0Expg\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.youtube.com\/channel\/UCysiZklEtxZsSF9DfC0Expg<\/a><\/p>\n<p>Go to the Insurance Claims Library \u2013 <a class=\"link\" href=\"https:\/\/lnkd.in\/gwEYk\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/lnkd.in\/gwEYk<\/a><\/p>\n<div class=\"sharedaddy sd-block sd-like jetpack-likes-widget-wrapper jetpack-likes-widget-unloaded\" id=\"like-post-wrapper-40151789-303558-67f240b7994c7\" data-src=\"https:\/\/widgets.wp.com\/likes\/?ver=14.5#blog_id=40151789&amp;post_id=303558&amp;origin=zalma.com&amp;obj_id=40151789-303558-67f240b7994c7\" data-name=\"like-post-frame-40151789-303558-67f240b7994c7\" data-title=\"Like or Reblog\">\n<h3 class=\"sd-title\">Like this:<\/h3>\n<p><span class=\"button\"><span>Like<\/span><\/span> <span class=\"loading\">Loading&#8230;<\/span><\/p>\n<p><span class=\"sd-text-color\"\/><a class=\"sd-link-color\"\/><\/div>\n<p><h3 class=\"jp-relatedposts-headline\"><em>Related<\/em><\/h3>\n<\/p><\/div>\n<div id=\"entry-author-info\">\n\t\t\t\t\t\t<!-- #author-avatar --><\/p>\n<div id=\"author-description\">\n<h2>\n\t\t\t\t\t\t\tAbout Barry Zalma\t\t\t\t\t\t\t<\/h2>\n<p>\t\t\t\t\t\t\tAn insurance coverage and claims handling author, consultant and expert witness with more than 48 years of practical and court room experience.\t\t\t\t\t\t\t<!-- #author-link\t-->\n\t\t\t\t\t\t\t<\/div>\n<p><!-- #author-description -->\n\t\t\t\t\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Post 5039 See the full video at https:\/\/rumble.com\/v6rlky1-insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished.html and at https:\/\/youtu.be\/R21dPn2pLSE Lack of Evidence Accusing Insured of Fraud Exposes Insurer to Punitive Damages In\u00a0Shalz Construction LLC, a Colorado limited liability company; and Bradley Shalz, individually v. Great Lakes Insurance, SE f\/k\/a Great Lakes Reinsurance UK PLC, a foreign corporation, Civil Action No. 22-cv-03005-NYW-NRN, United States [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":173297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94],"tags":[21167,11178,44534,43547,69309,16867],"dealstore":[],"offerexpiration":[],"class_list":["post-173296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","tag-evidence","tag-fraud","tag-insured","tag-insurer","tag-punished","tag-sues"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Insurer Who Sues Insured for Fraud Without Evidence Should be Punished - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=173296\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Insurer Who Sues Insured for Fraud Without Evidence Should be Punished - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Post 5039 See the full video at https:\/\/rumble.com\/v6rlky1-insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished.html and at https:\/\/youtu.be\/R21dPn2pLSE Lack of Evidence Accusing Insured of Fraud Exposes Insurer to Punitive Damages In\u00a0Shalz Construction LLC, a Colorado limited liability company; and Bradley Shalz, individually v. 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Som2ny Network","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fivemor.com\/?p=173296","og_locale":"en_US","og_type":"article","og_title":"Insurer Who Sues Insured for Fraud Without Evidence Should be Punished - Som2ny Network","og_description":"Post 5039 See the full video at https:\/\/rumble.com\/v6rlky1-insurer-who-sues-insured-for-fraud-without-evidence-should-be-punished.html and at https:\/\/youtu.be\/R21dPn2pLSE Lack of Evidence Accusing Insured of Fraud Exposes Insurer to Punitive Damages In\u00a0Shalz Construction LLC, a Colorado limited liability company; and Bradley Shalz, individually v. Great Lakes Insurance, SE f\/k\/a Great Lakes Reinsurance UK PLC, a foreign corporation, Civil Action No. 22-cv-03005-NYW-NRN, United States [&hellip;]","og_url":"https:\/\/fivemor.com\/?p=173296","og_site_name":"Som2ny Network","article_published_time":"2025-04-06T08:52:07+00:00","og_image":[{"width":300,"height":169,"url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH-300x169.png","type":"image\/png"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/fivemor.com\/?p=173296#article","isPartOf":{"@id":"https:\/\/fivemor.com\/?p=173296"},"author":{"name":"admin","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371"},"headline":"Insurer Who Sues Insured for Fraud Without Evidence Should be Punished","datePublished":"2025-04-06T08:52:07+00:00","mainEntityOfPage":{"@id":"https:\/\/fivemor.com\/?p=173296"},"wordCount":812,"commentCount":0,"publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"image":{"@id":"https:\/\/fivemor.com\/?p=173296#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/04\/MALICE-BAD-FAITH-300x169.png","keywords":["Evidence","Fraud","Insured","Insurer","Punished","Sues"],"articleSection":["Insurance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fivemor.com\/?p=173296#respond"]}]},{"@type":"WebPage","@id":"https:\/\/fivemor.com\/?p=173296","url":"https:\/\/fivemor.com\/?p=173296","name":"Insurer Who Sues Insured for Fraud Without Evidence Should be Punished - 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