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Truong v. Allstate

Truong v. Allstate

From the New Mexico Supreme Court
2010-NMSC-009, No. 31,013: Truong v. Allstate Insurance Company 


A certified class of Allstate insureds sued Allstate for alleged violations of the Unfair Practices Act (UPA), claiming that Allstate improperly used computer programs (Colossus) to underestimate and underpay first party insurance claims. At issue was whether a Market Conduct Examination (MCE) authorized by the Superintendant of Insurance constituted express permission to use Colossus exempted Allstate from claims under the UPA. In a lengthy opinion, Justice Daniels held that the MCE did not create the express permission necessary to exempt Allstate from UPA claims for the use of Colossus

2010-NMSC-010, No. 31,549: City of Santa Fe v. Travelers Casualty & Surety Company



The City of Santa Fe sued Travelers under a performance bond after declaring Lone Mountain Contracting in default under a contract with the City  to repair a water tank. Travelers obtained summary judgment because the City did not sue within the two-year time to sue provisions of the performance bond Lone Mountain purchased from Travelers. In an opinion by Justice Chavez, the Supreme Court reversed, holding that allowing Lone Mountain and Travelers to unilaterally contract for a two-year limitation period on the bond (where a six-year statute of limitations applied between the City and Lone Mountain) would be contrary to the purpose of the Little Miller Act, NMSA §13-4-18(A)(1), to protect the public and assure performance of government contracts.