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Foremost Insurance Company is going before Arkansas Supreme Court to appeal a Circuit Court order to produce all of their insurance claim files. The company estimates that producing over 600,000 of their insurance claim files will cost the company over $45 million.

The suit alleges that following loss or damage to the insured’s property, the company failed to disclose or pay the general contractor’s profit and overhead. While the insurance company did pay out claims to homeowners, the plaintiffs claim they are entitled to the additional funds.

The class action lawsuit was filed in the Circuit Court of Miller County, in Arkansas, on September 8, 2004.

The dispute is ongoing for over a year. In a hearing on July 16th, Foremost Insurance was directed to produce all claim files despite the estimated cost of $45 million for doing so.

Foremost argues that the “plaintiffs are attempting to manipulate the judicial process in order to gain an unfair advantage over Foremost by forcing Foremost to spend millions of dollars to collect and produce documents with the aim of forcing early settlement.”

Seeking a ruling by the Arkansas Supreme Court as to “whether a nationwide class can or should be certified under the laws of 51 jurisdictions,” Foremost Insurance has filed a motion to stay with the Miller County Circuit Court.

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